The 20 most common cause of failure of start up companies
successful people come from different ways, and failure of people always have the same reason. This sentence is also very suitable in the field of entrepreneurship. Many startups fail in the same place, today will take you together to understand the reasons for failure warning.
here are the 20 reasons:
1, there is no need to analyze the development of product
42% failed startups have had this problem. Founder of the implementation of their own creativity, but did not find out whether the idea is in line with market demand. Patient , founder of Insights, said to CB : "I realized that we didn’t actually have customers because nobody was interested in the products we developed." Communicator. Doctors need more patients than an efficient office."
2, financing burn, unable to obtain new financing
29% failed startups encountered this problem. Flud’s team told CB , Insights said, in fact, the failure of Flud because the company failed to raise new funds.
3, the team does not
23%’s failure to start a company is lack of commanding the overall situation. The reason is interesting, most VCs said, before the investment is the first consideration of the team, followed by creativity.
4, less than
5, pricing / cost problems
for startups, product pricing is not too high, nor too low, we should find the most suitable pricing. Unfortunately, 18% of the companies did not find the right pricing.
6, bad product
17% start-up companies to develop the product is very bad. GameLayers founder recalls, I think the company should lay down their bodies, the development of interactive products.
7, lack of business model