7 Reasons Why A Startup Company Won’t Succeed

Top Reasons Why A Startup Company Won’t Succeed

Talking about startup research, according to a study by IBM (International business machine) and Oxford Economics, about 90% of startups are closed within 5 years.

Every year more than 15 thousand startups business are started, out of which only 10% are such companies, which can make their mark in the market, the rest of the startups are closed due to lack of growth.

After all, why does this happen, and what are the reasons for the shutdown of startups, know through this article.

What Is A Startup?

Reasons Why A Startup Company Won’t Succeed
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You must have often heard about the word startup, startup means the business itself, but with a new idea to bring a new product to the customer, it is a startup in which the needs of the customers are taken care of. As if a startup is a business, it is combined with some creative and unique ideas, which emerge from its own identity.

These Are 7 Reasons Why A Startup Company Won’t Succeed

According to the report of KPMG on Startup Violations, there are common reasons for the failure of many startups in the country.

According to the report, 14% fail due to their average product, weak business model, and lack of marketing.

23% of startups fail due to a lack of the right strategy and also team coordination. There are many reasons, why startups get closed before they can grow. Let us know in depth the reasons for the spread of startups, after all, why startups are shutting down.

Why A Startup Company Won’t Succeed
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1. Due To The Scarcity Of Product Ideas

This mistake is a factor preventing startups from growing, many startups that are, bringing the same type of products into the market, due to which there is no uniqueness or any specialty in the development to the customers.

The customer believes more in experimenting with the product; it is seen that whenever a new type of product is launched in the market, the customers are excited to use it once.

The product that is, should solve the problem of the customer as well as have competitive advantages because there are chances of such products being sold quickly in the market.

2. Failure To Build Your Brand Image

It is very important to have the trust of the customers,

Even if your product and services are useful to the customer unless the customer has confidence in the quality of your launched product, they will not be attracted to your product, Due to this the brand value of the product also starts decreasing.

So the customer first is as important as the customer’s trust, what is the feature of the product, which makes it different from other products, as well as the customer has to describe their product in a better way, due to lack of which most people are not able to Know the correct use of the product.

3. Not Being Able To Select The Right Marketing Platform

Even though your product and services are better for the customer, only a few customers know about your products. In such a situation you need to know market products at the right place, but many startups ignore this factor Because of this you deprive many audiences of your products.

4. Copying Market Startups

Nowadays many startups have come into the market, and copying them to start a business has become a trend, due to which ideas are being copied, no new product or innovation comes into the market, so the brand of copy startups The market does not last long, this is also the reason why startups are closing.

5. Not Choosing The Right Location For Startups

Just like every place has a price, it is very important to choose the right location for any business, because your business depends on your customer’s feet, if there is no business at the right location, neither business will be able to earn profit. And neither will it last long.

For example, if you want to open a tea shop, then it would be better if you open it at a place where there is a high demand for tea, such as in business areas, college areas, or travel areas where people need tea early in the morning.

6. Choosing The Wrong Business

Many startup founders start any business without paying attention to their experts, but they are not able to reach the heights, one of the reasons for this is that they do not have the knowledge of that business, And they are not able to give better business growth.

7. Not Getting Funding Or Money On Time

Due to the lack of funding in many startups, the founders have to compromise on the quality of the products.

Due to this, the trust of the customers starts decreasing gradually from the products. And a stage also comes, due to which neither the company is able to earn a profit, but when it starts going into loss, there is no way but to close the startup.

What Has Changed In The Thinking Of The Youth With The Advent Of Startups?

Why Startup Company Won’t Succeed
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Nowadays, as fast as the craze of online business has increased, people have started startups.

Today a person prefers to live a tension-free life by starting his own business rather than a private job.

If we talk about the 90s, people used to be more serious about their job, behind their knowledge and kept the job at the top to settle, whether it is a government job or a private job, after getting it, the whole life is determined.

But in the changing times, there has been a lot of change in the thinking of the people, everyone calls himself the owner, and he keeps thinking of independent life.

What Is The Role Of Marketing Research In Startups?

The most crucial thing in a startup is to do marketing research, it starts with the product and services.

With marketing research, you have to do deep research on the product.

You have to research the locations, where you can reach your target audience, which increases the chances of the company growing,

Through marketing research, we get information about the new trends going on in the market, products and which products are needed by the customers, and which products can be sold very easily in the market, whose demand is very high.

With the help of this, we can bring a better and more useful product to the customers in the market.

Even if you open a startup without doing market research, even then the better quality of products does not reach the customer, in such a situation there are chances of startups closing early.


I hope, through this article, why startups are closed, what is the reason, you must have got the answer. Still, if you have any questions related to business, then you can ask us by commenting, and we will definitely answer your questions.

Author Bio

Aman khera is a freelance blog writer. He loves to explore the small business, finance, Credit and insurance and personal loans. Apart from writing, you can find him analyzing new market trends. If you are thinking of starting your business, then paydeer can be a better option for you.