India is a nation with the highest percentage of youth population and hence the highest number of upcoming startups. But for every successful startup, countless others fail. Some disappear like an enigma and others just go by unnoticed. There have been many statements on “Why startups fail”. We have figured out some important points on what is the reason for startup failures and how we can avoid it.

Here are the top 7 reasons why most startups fail

Solving the wrong problem

Every business enterprise provides the customer with either a service or a product, aiming at making the customer’s life simpler. Essentially this should lead to a solution to a problem, the society faces as a whole.

But, if you are trying to provide solutions for a problem that is too trivial, non-existent or has better alternate solutions, your startup is not going anywhere but towards failure.

For instance, “” did little to make it any better for its customers when they already had access to Quickr, JustDial and the likes.

Poor Marketing Techniques

One must plan ahead for the kind of user they want to target and their subsequent acquisition. In the absence of an advertising tactic aimed at your targeted age group, social strata or specific kind of customer base is the perfect recipe for disaster. Networking and marketing are the backbones of any business today.

To avoid such failure, a strong marketing team and effective networking play a key role. You can also hire an SEO company to take care of your marketing.

Timing, Timing, Timing

When and Where you begin your startup outlines the success of your new venture. Aside from a great business model, and a great team, Airbnb had to time on its side.

Wiping out the stigma attached to it. Bill Gross, the founder of Idea Labs and 100 other startups has stated that timing carries a whopping 42% weight age towards the success of a company

Bill Gross, the founder of Idea Labs and 100 other startups has stated that timing carries a whopping 42% weight age towards the success of a company.

Not valuing time could lead you to disaster, many of the startup’s with great ideas usually fail because of poor timings.

Partners who don’t click

Be wary because disagreeing on the goal and disagreeing on the approach are two different things. While the latter can be sorted with discussion, the same isn’t true for the former.

Not so strong partnerships or trust issues can affect your work, startups with such issues have lesser chances of being successful.

Also, read – Hootsuite vs buffer

Lack of Mentors

Adequate mentorship is a pre-requisite for chalking out a path from problem to the prospective solution your start-up is going to be.

Wrong Business Model

The key is figuring out a realistic cost for the production of the product, marketing of the product and customer acquisition. Very often the cost of acquiring the customer (CAC) is actually higher than the lifetime value of that customer (LTV) and hence the destined doom.

Tangy Cash Flow

A major reason that startups fail is that they run out of cash. A key job of the CEO is to understand how much more cash should be invested, how much is left and whether that will carry the company forward until it makes a reasonable profit and becomes sustainable.

Not thinking Win-Win According to Stephen Covey, author of Seven Habits of Highly Effective People, “Win-win sees life as a cooperative arena, not a competitive one”. A startup is bound to succeed if it entails profit for the company, its collaborations, and satisfaction for its customers.

Now, that you know what you shouldn’t do when founding a company, Go Get It!

Author Bio

Vikas is an SEO Expert and worked with several good companies. He likes to share his views on various topic. You must check his blog


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