Latest 2017 facts for Failure of new startup

What is the meaning of start-ups ?

– Start-up is the concept where 9 out of 10 fail

– Excellent idea + Passionate Founder + Extraordinary future prospects = fail

– Everyone trying their best = result fail

Is this the right definition ?
Definitely ‘ Not ‘  in most cases it’s the reality
I tried to figured out the major cause it as follows

1) Bad Marketing

Marketing strategy is vary important for penetration of products, now a days I am feeling that Mr. Philip kotlar personally tells the startup people to offer huge discount & offer. Without it they can’t cater customer. Today if a person want to buy napkin he go online & try to find out if there is any discount available.
Yes promotional offer is important but first make sure your Financial allows you.

2) Wrong understanding of business –

Value creation is a most important factor in any business, What is the ultimate goal of value creation,
A) Acquiring a customer with huge discount.
B) Recruiting highly educated incapable people for showing high growth.
C) Opening unnecessary branch offices for showing faster expansion
Or aim at a long term growth with the help of proper Financial management

3) Absence of team spirit –

Employee are the strength of any organizations but now a days young professional feel Start-up are bridge high package with designation.

4) Negligence of Financial –

Adequate management of financials are the most important aspect of value creation but as told by earlier people follow the trend, huge discount, higher number of employee, unnecessary branches contribute towards the higher operating costs. Higher Expense Lower Income equation become less attractive to investor results. Start-up face cash crunch
Which is the problem faced by almost 90% Start-ups

5) Wrong execution of planning –

Excellent idea + Extraordinary future prospects goes wrong when it executed by wrong way
Mainly the attitude & Vision are the piller are success who managed it properly get rewarded.


January 16, 2017


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