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Why do most startups fail top twelve reasons and solution

Hay, do you know that 90% of startups shutdown in first five years according to survey conducted. Here I am going to tell you that why do most startups fail twelve reasons and solution to save your unique one. So if you want to survive in industry then read this complete article other wise you will also go in the direction of failure.

Remember biggest failure as an entrepreneur is biggest success -elon musk


So these are twelve main reasons of failure of startup
Why startup fails and solutions
Solution to failed startups

Reasons why startups fail

Here I am going to tell you twelve main reasons and one bonus reason why they failed. And what should you learn from their failure. 

  • Competing with giants
This is the most important reason to failure I think. Competing with giants [big companies] in early phase is very dangerous for any startup. Let's understand this reason with one story. 
Let's assume that you have a E-commerce store with name "A" and you are in early phase. And you are going to compete with the world's biggest E-commerce store Amazon and you bidding on advertising on google with amazon. Then one day will come with the situation that you don't have money to complete with them. Then your startup is going to fail. So don't compete with giants. 
  • Not right timing and out dated product
This is the another important thing to understand that you have to make a product or service which is not outdated and can be used in the current time. 
For example:- if you think that your startup will make radio or pager in 2020 then your startup is going to fell very soon. 
  • Need of passion
If you are not passionate about the concept and field of your startup then you will not have interest for long time and you will be going to quite it. 
  • Not having proper information about industry
If you don't know very well about industry then you must have to know the pro's and con's of industry first to be succeed this can be the reason of 10% startups to fail. 
  • No skill ability
If you think that I don't need to learn skills. Then R.I.P. for your business because your team and your clients will always make fool 🙄 to you. Let's understand it with an example
:- think about that you are going to start a company of website development then you must understand programming first. Otherwise you can't know how much time it will take to build any type of website. Your engineer will make you fool by saying that we require one month for that work which can be done in ten days. 
  • Non productive team
Having non productive team can be major reason. Your team must have to be productive for that you can do things like
Making availability of coffee at any time in your office
Or
Taking motivational lecture
Or
By going on tour once in three months for refreshment
Or
Taking trainings to develop there skills
Cash burn rate is the very important factor if you don't consider it then you will going to fail. 
You will say that bro how can it affect me and my company? 
Let's get this answer by reading following story. 
Let's assume that you have 100k $ cash and your startup needs 5k per month for your liability like salary, internet bill, rent, etc. 
Then you must become profitable within 20 months to survive otherwise your company will be going to 💀 die. 
  • Pitching to investors
Pitching to investor is the basic skill required for converting a startup into multi million or billion dollars company. Because if you can't expand without money easily. 
  • Takes investment in early phase
This is the only major reason to loose control from your own startup. Don't sell the massive portion of your startup for few bucks, otherwise you will lose control from your company and you have to listen investor's orders. You will become slaves of investor instead of being owner. 
  • Founder misalignment
You must have to choose founders with the same intr est and they should have to be design taking ability. 
  • There is no need of product or service
You have to do survey of your product or service with the concept of minimal viable product. 
Most of entrepreneurs focus on their products design and all other things they don't concentrate on revenue generation and sales. 

Intelligent people learns from others mistakes and don't repeat them -warren Buffett

Bonus Tip
  1. Sustainability is important than Scale ability
First of all you must have become sustainable before being scalable. 

you have know others mistake why they had failed. Now you can apply this things to your business. To not to fail. 

How to make successful Startup

Idea 💡 the first step to successful startup is idea. As I always say that idea should be problem solving.
Usually it's not first idea which gives you success but the modifications or replacements made by you and your team in startup idea according to time and need of costumers results in successful startup.
Let's see it through some examples of successful giant companies.
How to become successful entrepreneur
Become successful entrepreneur by following steps

  • YouTube was first dating platform made by 3 PayPal mafiya's after need of video platform by costumers they converted it into today's video uploading platform and modifications are in progress still today. 

  • Facebook was hot or not then converted to this. 
So according to time and need of costumers you have to make changes in your startup. 

Next step to successful company is you have to understand that
Startup is not about working on a brilliant idea and becoming an overnight successful. But startup is about handling of extreme uncertainties. 
Let's dive into the story of successful blogger,digital marketer,founder of Ubersuggest and entrepreneur of this time neil patel. 
Some years ago he had started company called creasyegg. The idea of that company is very excellent they will have to solve the problem of social media traffic for other company's. 
He and his team build a product finally by investing time of one year and 1.5 million dollars and they launched their product. 
And boom no one is go to buy it because ha haven't asked to market that they need it or not. 
So you have to handle the situations like this. 

Remember that
Successful startup starts from this question while building their product or service. 
Weather I should build it or not? 
And not from this
Weather I can build it or not? 

You have to use lean startup method to start successful startup and collect feedbacks from your costumers. 

And last step you have to understand is 
Costumer is king and your all decisions should be for making costumes happy. And not for making happy to you and your team.

Role of CEO in success of startup

Role of CEO unsuccessful startup
steps to become successful CEO

Role of CEO in success of startup is very important because, company's success alll ways depends on CEO, COO and CFO. They must have to learn new skills. Manage all the workers and make productive team.
I will mention some qualities and skills required for being successful entrepreneur. 
  • Leadership
  • Sales
  • Management
  • Attitude +
  • Humanity
  • Etc
CEO must be innovative like elon musk so company can make best decide what to do and what not to do and can expand fast. 

Conclusion:-
There are many reasons to fail the company and succed the company. But you have to learn time to time to make your startup better.
Remember that costumer is always king don't cheat with them. Before starting startup make survey of your idea otherwise you will become fool like neil patel. The role of CEO is very important.
Note:- entrepreneurship is very important it can change your life

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