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:
- Do You Have a Really Good Concept for a Startup Business?
- Can You Start a Business in Your Garage?
- Best Blogs for Small Retailers
- Starting a Business? What Are the Best Books to Read?
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.
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