WHY STARTUPS FAIL ?
Reason 1: Market Problems The market timing is wrong. You could be ahead of your market by a few years, and they are not ready for your particular solution at this stage.The market size of people that have pain, and have funds is simply not large enough.
Reason 2: Business Model Failure I realized that one of the most common causes of failure in the startup world is that entrepreneurs are too optimistic about how easy it will be to acquire customers. They assume that because they will build an interesting web site, product, or service, that customers will beat a path to their door.I see the vast majority of entrepreneurs failing to pay adequate attention to figuring out a realistic cost of customer acquisition.
Reason 3: Poor Management Team An incredibly common problem that causes startups to fail is a weak management team. A good management team will be smart enough to avoid Reasons 1 and 2. Weak management teams make mistakes in multiple areas
- They are often weak on strategy, building a product that no-one wants to buy as they failed to do enough work to validate the ideas before and during development.
- They are usually poor at execution, which leads to issues with the product not getting built correctly or on time, and the go-to market execution will be poorly implemented.
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