Why 90 out of 100 startups fail? 5 reason to learn

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Failure is the stepping stone to success.

Yes, you heard right, This proverb suits everywhere, In life, In real life Challenges and even in your career. Being an entrepreneur, I understand the word Failure. 9 out of 10 startup gets failed, This is a hard bitter truth. But when you get up once again to fight the challenge that is the mark of a good entrepreneur. You must learn from the mistake and avoid the reason behind Startup Fail.

Startup Fails

When you round up the reason of failure then you came to know that this silly mistake or blunder you have done. Whether Your business is running online or Offline but the goal must be clear with making money to leading the industry. Today we will see 5 Reason Why 90% Startup Fails.

1. Product has no market.

This is one of the major reason for startup fails. As per Fortune Magazine, 42% startup fails due to this reason, This is the top reason for startup fails. They make the product no one wants. More than 42% startup agree on this that they made the great product but there is no market for their products.

If you spend time on making the product then you must spend time on the doing research that you are making the right product for the right market.

Entrepreneur or Startup is not what you know you can make the product but you have to make the product on the based on customer demand. Product with no market has no value and it will get fail only so Before making product fight out the right market.

2. Not the right team.

Many start-ups end by saying that “We won’t have Right Team”. Right Team is one of the most important parts for any startup. Approx 23%-25% startup failure reason is not having the right team.

Why they have the wrong Team? Why they hire the wrong person who makes their dream project to die.

You have a great product with the great market then also your startup get an end and all because you can not hire the right person or unable to make the right team.

2.1. How can you make right team?

To make the right team how to have to hire the right person who is with you at any time.

  • Prior experience: This played an important part. One must have some knowledge of startup it is a bigger advantage.
  • Founder: Founder or Co-Founder play Important role in making the company successful. They must discuss with their team even he/she know everything.
  • Talents: It is an obvious requirement, You can not hire a person without Talent.
  • Dedication and focus: Your team must believe in your Idea, They must share the same dedication and Focus like you or any teammate.

Job distribution is good for the startup but being dependent on them is wrong. A startup can also fail if You have great products or Even you have a great team.

Eventually, a Startup can die due to overlooked key aspects of the business process and the β€œboring stuff.” or Even due to Your team management.

The CEO thinks, β€œIt’s my job to lead.” The CMO thinks, β€œIt’s my job to market.” The lead developer thinks, β€œIt’s my job to code.”

Make great team be proper management will make your startup success.

3. Run out of cash.

This is one of the most common and frequent reasons for any startup who died. Approx 25% startup came to end due to their business came to running out of cash.

But why they run out of cash? One of the reasons that they can not able to scale up their business as fast as they expected and need to.

If your startup grows fast then you can bypass some of biggest startup killer like losing to the competition, losing customers, losing personnel, and losing passion.

3.1. How can you overcome when you run out of cash?

  • Know your zero cash date: Be aware when you are going to be out of cash.
  • Do small experiments: Raising fund from investor or VCs is really tough, They love data along with long-term goal. so start doing little experiments while raising the fund and collect the data to show them.
  • Planning: When you know the last date then find out maximum possibility how to run longer and longer possible before any funds come.

Running Out of cash is one of the biggest and most common problems but you have to only figure out how to come out of this.

4. Poor product.

Well, this is not the most common reason for startup failure but it is one of them. Many startups fail as they unable to understand the Customer point of view. They won’t know whether customers are able to use the products or not.

Your product must be user-friendly and Customer knows all the benefits of the products so they can use it more easily. Get proper feedback every time and make changes as per the requirements.

5. Lack of business model.

It is most important for any startup to have clear Business Model plan. Many failed founders seem to agree that a business model is important.

If you have a Great product and lack in the business model is going to make your startup end. You have to make Proper Business Model plan with Plan A and Plan B. You have to keep eyes everywhere how to scale with how to raise the funds to make the business run for long terms and make it successful.


These are the few common mistakes done by the entrepreneur, which results in them to end the startup. Hope you like it and please share your views in the comment.

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