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90% startups fails: Learn from their mistakes!

Failure is a Key to Success - Learn From Mistake

Thursday September 21, 2017,

6 min Read

I strongly agree with this quotation "Failure is a Key to Success". In your life, if you want to succeed then never stop yourself from being Fail. In this world no one is perfect, everyone has seen the path of failure then only he/she succeed.

If you are an entrepreneur, then you must hear that 90% startup failed every time. This seems unrealistic but it is true and very hard to digest. In spite of this, we didn't stop to become an entrepreneur because Failure is a Key to Success. You always try best that your startup becomes successful. But due to some reason, it failed.



Failure of every startup is very silly,

When you cross-check reason of your startup failure then you came to know about the mistake which you have done. Your mistake can be silly or blunder but the mistake is always a mistake.

Here I have listed out some of the top reason for startup failure.You must avoid these mistake. Making money from a business is not so easy as you think.

#1. Wong Team

Team role-plays an important task in a Startup. Being a founder of a startup if you hire the wrong team then your startup can fail. Many founders accepted that their startup failed due to the wrong team. As per statistics, 23%-25% startup get failed due to their team. Surely these teams are not right as per startup. Keeping the right team in your startup will reduce the chance of getting your startup fail.

How to Hire Right Team?

No one wants to hire the wrong person for the startup but some time to cut the cost of employ, they do these things. You have no idea how much Team is important for the startup. They are pillars of a startup.

To avoid the mistake here I am listing out some of the tips which you follow then these mistakes can be overruled and you will come with the great team.

1. ExperienceExperience players are always trustful in sports. In the business even too. Their experience will help out many ways in the startup. They have the knowledge where and how to do the task. It will be the biggest advantage for the startup.

2. Dedicated team - While building a team for your startup, You must hire someone with same dedication and belief in your idea.

3. Talent  - This is a normal requirement. Teammate without talent is no use. Build a team with a talented person will extra skills.

Keeping in mind with these terms you can make the good team which will work.

Good team with encouraging CEO will make the success of steps in a startup company. Avoid being bossy in your office and start interaction between employ. This will reduce the wall barrier and everyone will share their views more frankly.

Make a great team with proper management will make your startup success.

#2. Product No One Wants.

Any startup will fail if their product has no market space. As per the survey, This is the top reason for startup failure. More than 42% get failed due to the wrong product in the market. Entrepreneur makes the product but failed to sell due to no market.

Before making any product, you must spend time on the doing research that you are making right product for the right market. 

Making the product is not based on your knowledge, But it must be based on customer demand and how to create the customer demand over this. Before making Product, Spent time on analyzing the product for right market

#3. Running Out Of Cash.

Running Out Of Cash? This can cause full stop on your startup. Many startups get fail due to this, Data shows approx 25% of the failed startup have this reason.

What is the possible reason that your business run out of cash?

For running any business, cash surplus is very much important. Without cash, your business will die. There may be many possible reasons for this like.

1. A slow scale of the startup - This is the most common reason for running out of cash. Your business didn't scale as per your expectation.

2. Increase in raw product cost - Sudden increase in the cost of manufacturing will also let your startup run out of cash.

How To Overcome This?

There is no magic in this, It is one of the most common problems and you can come out unless you won't have a proper plan.

First, know your date when you are going to be Zero Cash. Make plan according.  This is the most important point. If you know the date of your death then you can fight to survive more, same apply in your startup too.

Raise Fund - Well, This is not so simple but it is a really tough job. Convincing VCs in your idea is very difficult, You can do it by showing some real stats data of your startup by running in small budget

Planning - Plan your next few months expenditure and find out maximum possible duration to run your business. 

Sell Unwanted Stuff - Sometimes you invest in unwanted things, get rid of those things and collect some money, like office space, unwanted PC or system.

#4. Product Quality

Poor Product can be one of the reasons of your startup failure. This is one of the reasons for startup failure. Being an entrepreneur you must know the customer point of view and build great product accordingly.

Most of the startup who failed due to this reason is not aware, whether their customers are able to use the products or not. They maintain some distance from the customer or they failed on working on the reviews of the customer.

#5. Business Model

Business model gives you an idea of pitching the product and marketing it. Lack of business model can be one of the reasons of startup failure. Many founder and co-founder agreed over this that business model plan is important and if anyone has the wrong plan then it could let then end of their dreams project.

Along with the product, The Business model also plays a vital role in the success of a startup. End of the day you are doing business only. So, must have a proper business model.


I have come with these top possible reason for any startup failure. If you worked on these valid points then the possibility of getting failed in the startup will reduce. I can not commit 100% success as there are many other points which play an important role in the successful startup or business. Like proper sales funnel, Brand marketing and Campaign and many other.