Why Startup Fails? Reasons behind failure of
Startup.
What is startup?
Start up means
a new business started by an entrepreneur. Entrepreneur is an individual who
aspire to start a new business as earning source. Startup may be small type or
big in size from investment point of view. Everyday a large number of people
begin new business but only few can exist for long. Around 70% startups fail
and closedown their business within one year only. While some of those can
sustain in market for two to three year and then quit due to cutthroat
competition in market. The loopholes that pull new business back are given
below.
No clear target:
First and
foremost duty of a business man is to know the ultimate target of his new
start-ups. If he does not aware of it then his business will die of confusion. The
complete map of his business world should be prepared clearly at the beginning
otherwise there is 100% chances of missing target.
Lack of
knowledge and experience:
First of all an
entrepreneur ruins his business at early due to lack of knowledge and
experience about the business he started. Zero experience put your business down
when difficulty comes without information.
Lack of
Management Skill:
Management skill
refers to show direction and keep on going on that direction smoothly. If your
business can not run in an average speed, it tells about inefficiency of
managerial skill of entrepreneur. If manager can’t take right steps in right
time then the business will definitely ruin. Uncaring mindset of a business man
will not allow his business to grow up.
Poor business
model:
Complicated business
model is tough for employees to work and difficult for customers to access your
business confidently. If communication from top to button level employees is
not transparent then business will face lots of unwanted troubles. Customers avoid
dealing with poor model of business for poor service.
Lack of Selling
Skill:
Business may be
small or big but selling is important in both conditions. Business means
selling of goods or services to customers on profit. And profit increases with
sales increase. But lack of selling skill will drive away customers and
ultimately business will diminish. If you and your staffs don’t know how to
allure and take a customer in grip then your product or service will remain
with you.
Lack of Finance:
What is blood
to human body likewise sufficient fund is to business. Without adequate investment
the smooth flow of business gets interrupted. It also stops the growth of
business. Over investment also breakdowns the financial condition of
businessman. Many business fails due to over liability from banks and
relatives.
Wrong product
or services chosen:
If product or
service is not suitable according to customers demand then your business will
certainly close in no time. Many business man do this common mistake that they
never survey market need before starting business. If product or service can
not satisfy present customer that will not able to attract new customers.
Overconfidence
of Success:
Some new businessman
think money can bring success to their business. But they don’t know it is the
skill and knowledge of business that can get them success. Even they don’t take
suggestion of any business mentor while their business is in difficult condition.
Overconfidence becomes negative attitude and in turn the business fails to run.
Lack of
upgrading:
In this new era
everything goes changing time to time. If a business man doesn’t make necessary
changes in him and to his business then there may be downfall. If you are not
aware of online promoting of your business then you are far behind your competitors.
Lack of
patience:
Patience is the
hymn of success. Business is like a penance. If you want sudden profit then
your business will come down because of unfair tricks you play with your
customers.
Conclusion:
It is easy to
start a business but it is that much difficult to sustain in market of
competition. So if one takes care of all above mentioned information will help
him to exist in market. It will also help him to take right steps in right time.
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