Why Most Start-Ups Fail

[Mika]

Do you know the percentage of start-ups failure is really high. IT is said more than 50 percent start-ups cannot even make to one year anniversary. Start-ups that survive the first year still face a lot of challenges, and the majority of these start-ups fail to go beyond the third year. There are many reasons why start-ups fail, some of the common reasons are limited resources, insufficient funds for marketing, and adverse market conditions. To become successful with start-ups, having a brilliant idea, product, service is not enough, you also need resources to launch and market your products. You also need to make strategic planning by not only researching your idea but also the market.

 

[Etini]

Researching the market is the singular factor that can make a startup irrespective of capital resources to survive. You won't come and start a business that people are not interested in and hope to do well. You are answering a question that no one is asking.

A guy came in with big money to open a Forex trading academy in my state. He invested heavily on getting a hall, equipment and the likes. He didn't find out the nature of the people in the state. And if their nature would help them embrace Forex trading. That's how he failed because people in the state are so traditional and are not favourably disposed to anything online.

The academy had to pack up after a year because they couldn't afford the rent if the space.