Daily we see many start-ups entering the market but do they sustain or fall with time depends
on a lot of different factors like pitch deck, competition, etc. While some start-ups get
successful with time, others end up getting a taste of failure. There can be various reasons
behind the shutting down of a start-up.
In today’s fast pacing world having a plan in hand is not the only key factor required for building
a business. One has to be well versed with the business world, and then only he/she will be able
to transform an idea into a successful business.
7 reasons for the failure of Startups
Let’s check out the causes responsible for the collapse of start-ups:
- No market demand
When you are a start-up you have to see to the fact that the goods and services that you are
providing to the customers are adding some value to their life. If your services are great, then
automatically they will have a good demand in the market and if not, then the start-up ends up
like a flop movie. - Lack of finances
Many start-ups fail due to the lack of financial help. If a start-up doesn’t find any investors to
pool money in their idea, then they cannot continue for a longer period. Good finances can
boost the chances of a start-up to live on. - Increasing competition
Day by day, the competition in the market keeps increasing. Many times the start-ups are taken
over by their competitors as well. You will only sustain in the market if your idea is unique and
it strikes a chord with the audience. - A flawed team
One of the major reasons why start-ups fail is due to the disputes amongst the team itself. If
the members of the team cannot cooperate and work together, then it will ultimately result in
the shutdown of the start-up. - Bad pitch deck
A start-up needs to have a good pitch deck, it’s a brief presentation based on which the
investors will decide whether they want to invest in your start-up or not. Make sure that the
startup investor pitch deck is perfect. - A mediocre product
Your product or service cannot be average you need to ensure that it is something out of the
box, then only it will be able to catch the eyeballs of the people. The product or service should
speak for itself otherwise it will get lost in the market. - Not prioritizing customer needs
Another main reason for the failure of start-ups is that sometimes they fail to meet the
expectations of the customers. If the audience does not give a green signal to your product,
then you cannot thrive in the long run.
Conclusion
Before entering the market you should do your research about the sphere of business. Try to
observe closely the reasons behind the success and failure of the other businesses and learn
from their mistakes. Prepare a strong start-up pitch deck for the investors, think about a
business model that fulfills your requirements, and then proceed further.
