Why do most startups fail?

What Is a Startup?

Investopedia defines a startup as “a young company that is just beginning to develop.” It is brought into the function because the founders have found the solution to the problem in the society. Basically to fill the gap in the market. Startups are rapidly growing in Indian market.

Why do startups fail ?

To reach the top 1 position, you must execute the right idea in the right direction at the right time. There are many reasons for the failure of startups. 

Lack of finances -Many Startups fail because of money issues. Sometimes they get less funding or Sometimes the money is not used in the right place. More than necessary Cash burn for things like marketing, promotion, product packaging etc.

Not taking risks - It is extremely important to keep on changing and upgrading with the time. Some founders don't take risks. They have Fear of taking risks or changing according to the changing times. It is crucial to evolve with the market.

A wrong notion about the market -Not having knowledge about the market and industry is also one of the reasons why startups fail. Not understanding the demand and supply, incorrect pricing, too slow on pick up, late execution of plans, not understanding competition etc.

lack of persistence - The rise of startups don’t happen overnight, but slowly, over a gradual period. However, a lot Of people have misconceptions and start their startups with the wrong idea. Sometimes they quit too early in the process of downfall and rise. They give up easily.

India is one of the fastest-growing economies in the world. Startups are the future of the economy of the country.