Reasons Why Many Startups Fail

Starting a new business is often much harder than startups realize. For many reasons why many startups fail. To the extent possible, they must be avoided.

Look at three of these posts about starting a new business:

 

Reasons Why Many Startups Fail

Some startups succeed spectacularly. And we know Facebook as an obvious example. Back in 2005, Accel Partners made a $14.8 million investment in “thefacebook.com”. As a result, the firm made a whopping $5.6 billion return. This amounted to 378 times the original outlay. More often than not, however, startups tend to fail and they fail brutally. CB Insights found that 70 percent of upstart tech companies fail, along with 97 percent of seed crowdfunded companies.”

“CB Insights also analyzed a selection of startup post-mortems. This helped to paint a picture of where founders and investors go wrong. The following infographic shows the top twenty reasons that startups tend to grind to a halt. Goods or services not serving a market need appear in the first position. Not all ventures manage to attract lucrative investment like Facebook. In 29 percent of cases, they just run out of cash. It’s also important to have the right people on board. And pressing on without the right team is the third most frequently cited reason for startup failure.”

 

Now, take a look at Statista’s infographic.

Starting a new business is often much harder than startups realize. There are reasons why many startups fail. Check out the list from Statista.
 

This entry was posted in Career Useful Information, Careers in Retailing, Part 1: Overview/Planning, Part 2: Ownership, Strategy Mix, Online, Nontraditional, Part 3: Targeting Customers and Gathering Information, Part 8: Putting It All Together and tagged , , , , . Bookmark the permalink.

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