Startups are formed for creating a product, service or an app that will satisfy the need found in the market after a detailed research. Finding the ‘NEED’ is most important. Once the need is realized, finding the way to satisfy the need comes which leads to further research. For example: Need to be in touch amongst people always existed. Ways to satisfy were found with the use of mails, telegrams followed by e-mails, telephone and now mobiles. However, we also understand that not all startups are successful. The failure rate is 6-7 of every 10 start-ups; some in fact argue failure rate is as high as 90%. This number is quite important while considering a startup. So what are the reasons that make a startup fail? Listed are a few.
Startup failure reasons
- Insufficient requirements
- Gap between the requirements and the end product
- Processes are not followed
- Consistency in timely delivery of the end product
- Incomplete knowledge transfer in the organization
- Lack of regular training to employees
- Lack of motivation in the personnel leads to attrition
- Processes are not in place due to which there are chances where in the end product might not match with the conceived one
- Improper marketing strategies
- Customer Satisfaction is not met
- Acknowledging the feedbacks and Complaints
Flaws can appear at any point of the product design from the time of information gathering, to writing the requirements specifications, development, testing and finally releasing the end product. Understanding that the product or the service is the key element to startup success is crucial. Ample time must be dedicated to know whether there is a market existing for the customer who will purchase your product. Also, market research and lean startup model must be considered rather than trusting on sheer instinct and over confidence.
A startup is a compilation of efforts right from the scratch and needs continuous commitment. If there is a lack in any one function it can impact the entire startup itself. Always stay logical, stay successful!
— Team SoS