In the recent years, there have been a lot of small businesses or startups that have been launched. While things looked okay, as a few months went by, they had no choice to pack up and close down. Why is that?

There are a variety of reasons why most startups fail. In our experience, here are some of the most common reasons why:

No Existing Market

In order for a business to survive and obtain profit, they need to have a market that is willing to patronize their services or products. A lot of the time people who want to start their business have an idea that they think is a good idea but do not realize that they need to have a consistent market need for their product.

As a result, after the initial novelty of their startup, they find themselves struggling to pull in customers.

Bad Fiscal Management

Money always matters in the world of business. It takes a lot of money to start a business and takes even more to keep it around. In order to maintain operations, there needs to be a suitable influx of finances AND proper disbursement of funds.

If the one handling the funds isn’t directing the money to where it should be going, the rest of the business will be going belly up sooner rather than later.

Working With the Wrong People

A common issue that most people have with their startups is finding the right people and actually keeping the wrong sort of people around because of some misplaced sense of companionship. When it comes to a business, you should not let your sentimentality override your judgment.

While it is not good to be so cavalier about hiring and dismissing people, you need to look at the bigger picture. Those with failed startups only considered the day to day engagements with their people to see what larger effects were happening because of these people who were the wrong fit for the business.


If you are a startup yourself, you need to be well aware of the pitfalls that may have succumbed to. This will help you navigate through the rough waters and wean out the things that you don’t need. If your business is going to make it, you need to be able to understand how you can rise above the rest of the pack.

In your area, why do most of the startups fail there?

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Knowledge in Loss: Why Do Most Startups Fail?

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