Top 5 Reasons Why Most of the Startups Fail

It’s common to have a plan for a startup among the youths these days. Most of you have probably thought of the idea and may have also discussed it with your friends. Startups are full of ups and downs. You experience happiness, success, joy in the startup. But you are more likely to face sorrow, loss and failure in your startups than success and nobody likes to fail or lose anywhere. So, here are the Top 5 reasons why startups fail, which may help you to realize what not to do.

Seeking only profit

In your business, profit is not everything in the beginning. You will need to invest in your product, market analysis and especially advertisement. This process in the beginning, will bring loss for sure. Loss is the motivating factor. But instead many of them take it as a discouraging factor and give up on their goals. It seems as if you are going down in the initial phase, but eventually it will just be the opposite. You just have to give your time and make the best of your product.

Delayed Execution

If you are thinking about starting a business then many ideas might come to you for the startups. But if you are not working on it then it will just be a random thought of yours. You will be left behind if you don’t start working on that brilliant idea you have in your mind. It’s better to begin research on your plan rather than to sit and dream about it. It’s not that you go and start working on the field without any solid strategy and plan. Just dreaming and delaying even the tiny work on your plan, may decrease your motivation and desire.


Many startups fail and some do not even start, just because the person who came up with the idea is afraid of the society, failure and competition. Of course people are going to say something. Some will try to bring you down while some of them will only encourage you. Listen only to the positive stuff and take criticism as your motivation and lesson.

If you’re starting at an early age and if you are a teenager, then failure and loss will be the best thing that will happen to you. You don’t have kids and a family to worry about at this age. You will only learn new things with your startups, whether they fail or succeed. But if you are close to your 30s or in your 30s, it will be difficult but it won’t be worse to give it a go. Many had their startups in their 30s, 40s or even in their 60s too and still made it to the top. It’s never too late if your plan is good enough.

Taking startups as a cool trend

The life of successful entrepreneurs or businessmen is nothing like what they show on social media. It’s just the opposite and way difficult. You have to work 24 hours a week. You experience loss, criticism and many failures mostly in your initial phase of the business. Many newcomers ignore these negative parts of a startup and start their business only looking to the glamorous side shown in the social media. If you are one of these people, there is a high chance that you will give up for good, even in case of a common and a tiny failure. Most of them just copy the exact same thing and expect it to be a big thing, which usually is not the case.

Taking reference and help won’t do much of a bad thing but you have to have your own unique idea. You should be aware of all the difficult sides and have will and courage, with a unique plan to step up on the battlefield.

Weak Market Analysis

Market analysis is the most important thing and probably the first one to do for your startup. Many startups have a poor market analysis, which causes dissatisfaction among the customers. This mistake can even make your product not stand a chance with its competitors in the market. You should understand what the customers of your market expect and demand from the suppliers and work accordingly. This probably must be the most difficult and vast task of all in a startup. So leave nothing behind in the analysis of your market. Also, try to expand your network and make as many connections as you can in your field. 

You should be unique in the market and bring something new to the market. It attracts more customers. You should give more to market analytics as no one knows better than you how to make your business different from others. Remember, the customer is the king and you should be the only advisor of the king.


Startups are never easy and full of obstacles. If you think the opposite, come out of your fantasy world and be practical. You will experience failures for sure. But glory won’t be too far only if you don’t give up. The key is always giving your best and never giving up despite numerous setbacks. There may be many other reasons but I find these reasons most common for a startup to not succeed. If you are familiar with any more reasons, plz do comment and let us know. 

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button