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Why Startups Fail: Reason #2 – Ran Out of Cash
The Problem Every startup needs an initial pool of cash to live off of before it reaches the point where its profit is enough to sustain it. Not all startups are lucky to survive long enough to see that day, though. In around 29% of cases, the business runs out of...
Data2050 update
The Data2050 BETA test batch is a success.
We are very proud to announce that for the past few months, we have been successfully testing our BETA batch of companies.
Why Startups Fail: Reason #20 – Failure to Pivot
The Problem The last on CB Insight’s list, but not the least – Failure to Pivot! Startups are the skinny lifters in a business arena, talk about the mightiest lifters; we’re pointing at Nokia! It failed to pivot when the smartphone cyclone took the mobile industry by...
Why Startups Fail: Reason #19 – Burnout
The Problem Emotions – they are wherever we are. Even in business! There are 8% startups that fail because the entrepreneurs pushing them to the finish line are exhausted and burn themselves out. It’s a common human problem but like all problems, it does have a...
Why Startups Fail: Reason #18 – Didn’t Use Network
The Problem This reason is one of the most trivial of all. 8% startups fail annually because they do not create a social presence. After having to do with finance, the second element of a business is the “society”, it’s a social game. It’s almost common sense to know...
Why Startups Fail: Reason #17 – Legal Challenges
The Problem New ideas sure can be exciting, but if the excitement is enough to make an entrepreneur skip the legal brainstorming it’s not less than gasoline – because eventually it as the potential of burning the business up. There are quite a few dimensions to...
Why Startups Fail: Reason #16 – No Financing/Investor Interest
The Problem If you’ve ever watched an episode of Shark Tank, this shouldn’t be a surprise to you. There are tons of startups out there that are brilliant but gain no interest of an investor, and many startups on that show are so bad but there’s some investor who just...
Why Startups Fail: Reason #13 – Pivot Gone Bad
The Problem Achieving and maintaining success with a startup in the long run is challenging, which is why it’s rare to see them last for longer than 5 years. Statistically, 90% of them won’t live to see their sixth year, which means there need to be survival...
Why Startups Fail: Reason #14 – Lack of Passion
The Problem While businessmen enjoy freedom in their offices, without the pain of being bossed around, it doesn’t start that way. In the beginning of any startup, there’s a plethora of problems and challenges that an entrepreneur faces, which can only be solved by his...
Why Startups Fail: Reason #15 – Failure to Expand Geographically
The Problem In some cases, a startup finds a sweet spot for itself in the market where it’s allowed to function at its current scale while remaining profitable. It has a niche of its own, where the customer base is wide enough to fuel its expenses, while also yielding...
Why Startups Fail: Reason #11 – Losing Focus
The ProblemEntrepreneurship isn’t only the name of being able to produce and sell products. It requires an unshakable vision, strategic planning, and most importantly, laser sharp focus. The ‘focus’ element has to do with the execution of all the crucial processes in...
Why Startups Fail: Reason #12 – Disharmony among the Team
The ProblemAs much as an entrepreneur loves independence, it’s a luxury most can’t enjoy. To materialize a successful idea, he’ll need financial support. The startup will need funds to feed off of in its early days, and they come from co-founders and investors. Both...
Why Startups Fail: Reason #6– User Un-friendly Products
The ProblemYour idea might be amazing, and there might even be a huge market for it, but that’s not enough. You see, running a business requires systems in place to constantly solve problems, formulate policies, and find answers. These systems comprise the business...
Why Startups Fail: Reason #3 – Not the Right Team
The Problem To succeed, a startup needs a killer game plan and the right execution. Firstly, an ambitious yet achievable vision needs to be drafted, followed by deriving the strategy to achieve it. Finally, it’s time to implement it and reap the rewards. All of these...
Why Startups Fail: Reason #7 – Product without a Business Model
The ProblemYour idea might be fantastic, and there might even be a massive market for it, but that’s not enough. Running a business requires systems in place to solve problems, formulate policies, and find answers continually. These systems comprise the business model...
Why Startups Fail: Reason #8 – Poor Marketing
The ProblemMarketing is one of the most critical areas that a startup needs to focus on. Most people think there’s not much to it, all you need is some money to fund it, and that’s that. But, while thoughtlessly paying for some online ads counts as marketing, many...
Why Startups Fail: Reason #10 – Not the Right Market Timing
The ProblemIt’s a shame when startups fail due to a mistimed launch of a product with great potential. Regardless of how perfect your product idea is, the startup needs a response from the market to capitalize on it. For the market to respond effectively, the timing...
Why Startups Fail: Reason #9 – Ignore Customers
The ProblemCustomers are the only source of financial income for any business, so the entire startup universe revolves around them. Every successful business model plans out operations, moves, and strategies to please valuable clients. As long as your consumer base is...
Why Startups Fail: Reason #4 – Get Outcompeted
The Problem Unless you’ve come up with a revolutionary invention of your own, there will always be other market players selling what you’re selling. Having been around much longer, they’ll have an established customer base and much more experience. These are potent...
Wy startups fail: Reason #1 – No market need
42% of companies end up failing because there isn’t enough market need for their product or service – it is hard to comprehend and pivot when there just might not be a market for what you love!
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