Why 90% of Startups fail?

‘Startups’ - a buzzword these days, has marked several revolutionary changes in the economic status of several countries. Not only in Silicon Valley but we are appalled by the increasing number of startups mushrooming all across the globe, with each one promising to be better than the other. 

However, every startup entrepreneur is often ushered into the path of uncertainty, and slowly their vision to succeed; perish as it had blossomed initially. For startup Investors, the situation is not too different as well. Most of the time, they need to trust their own hunches and entrepreneurial promises that often defy reality and crashes before it is ready to fly. 

When asked the startup specialists, here are few points that redefine entrepreneurial failures :

No Market Demand 

The enormous emergence of startups has prompted customers to a diversity of products and services that are often redundant.  

Disillusioned startup entrepreneurs usually find it hard to strike the right balance between demand and supply, misjudging the target market and consumer behavior. 

One must debate the viability of the project before the launch. The products/services - Is it needed by the world? Is it a necessity or luxury? 

As an entrepreneur, one would always feel the importance of it. However, reality may be completely different with the customers refusing to buy. 

Soon he lands up in a scenario where his idea creates things that are non-acceptable to customers. To avoid this, proper market research and analysis of market demand are necessary before launching the startup. 

Absence of the right team 

To achieve something, every member must work as a team towards a common objective, without which a startup is destined to fail. 

A unified vision with motivational thoughts needs to be imbibed by the founder to the team. 

The team should have the right balance of self-motivated experts and innovators, capable of working diligently as per demand. The right team with the right attitude is vital ingredients for a startup to succeed. 

Ineffective Business Model 

Only having an idea for the business is not enough. A startup needs to have a proper business model, its monetization strategy, and the entire implementation strategy planned right at the beginning.

A proper business plan with an execution strategy must be in place to avoid aiming in the dark. Without a plan, high chances exist that the venture would fail as it would not justify the misuse of funds, inadequate production, and decreasing sales that are regularly prevalent in a startup.

Inability to recoup from experiences

It is quite pertinent that most startups would make initial mistakes.

There is nothing wrong with it. However, the concerning fact is that people fail to accept their mistakes and make amends.

Refusing to learn from mistakes is a bad trait that we frequently notice amongst budding entrepreneurs. Instead of being receptive, their young minds get controlled more by ego and ambition. Repeating similar mistakes is detrimental and will let the startup plunge deeper into a point of no return. 

Few samples of such mistakes could be disappointing their employees by paying lower salaries or overburdening them with work or maybe charging improperly to customers. Thus when a startup fails its customers and employees, it cannot survive long in the market. So the sooner one realizes this and takes corrective measures, the better it is for their venture.

Lack of focus 

Time and again, founders often lose their way during their startup journey when they keep toying with their ideas. Even if the startup thinks of working in a particular sector, it may end up producing something else if plans are changed interim. Lack of focus often leads to business disarrays. 

It usually happens to startups with multiple founders displaying diversified ideas and changing them instead of unifying them. So it is of paramount importance to have a focused vision for success and not change it periodically. 

If you are contemplating opening a business in Thailand and need any professional assistance for setting up a business in Thailand, ask the startup specialists.