What Are The Most Common Reasons Why Startups Fail?

Statistics show that 1 in 5 million startups end up reaching a worth of $1 billion but most startups fail in the first year after launch. It is really important for every single startup enthusiast to be prepared and part of that preparation is to know why startups fail.  This is why you want to know the following really common startup fails.

Not Taking Feedback Into Account Before Launch

So many founders just refuse to take feedback into account until they think the product is perfect. This mistake is normally done because of being afraid someone is going to steal am idea, there is a desire to impress or just ignorance. Not getting feedback for the potential customer tends to often lead to launching something that is not actually going to work well. Try to build inexpensive prototypes so you can see if they are going to be useful for potential customers.

Not Being Able To Raise The Necessary Capital

Those that never raised startup capital before rarely understand how difficult this is. There are various different rejections that are going to appear. In many cases the entrepreneur will realize that cash is going to run out but that is way too late. You want to be sure that you plan as in advance as possible. Have patience and develop a really strong business plan so that you can impress those that would be interested in investing in your business.

Running Out Of Money

Not watching cash flow is a huge mistake that almost always leads to bankruptcy. You want to always take control of the cash that you have in your business. Unfortunately, there are various problems that can appear in relation to money. For instance, the distributors need to be paid on time but clients may end up paying late. If you cannot pay your distributors you would be faced with problems since you cannot create the product so that the business can get new money. Eventually, you run out of money and if you cannot get more from investors or a loan, you are led to bankruptcy.

Not Having A Promotion Strategy In Place

According to marketing specialists at Blog For Web, there is a huge number of startups that just launch a product without having a promotion strategy in place. It is really important that you start promoting the product even before it is officially launched. You want to take all possibilities into account. In some cases you are going to want to use online marketing more than billboard ads but in others you would have better results with the billboard ads. Be sure that you have a promotion strategy that is suitable for the business you are launching.


Never treat startup launch as something that is easy. Plan as ahead as possible and be sure that you will always take professional advice into account. It is really important that you have patience and that you take it one step at a time. Startups fail but this does not mean that yours will.