Top Reasons Why Startups Fail And How To Avoid Them?

Startups are encouraged a lot in the modern era of the open market. However, the bitter fact is that most of these startups are facing unprecedented failure. It’s certainly great to see that the enthusiasm behind opening a startup has not lowered among youth despite being aware of this bitter truth.

However, this doesn’t mean that they should not bother about the failures of others. Rather, it would be wise to learn from the mistakes of others. In this context, below are some of the prominent reasons behind the failure of startup development that one should keep in mind before starting his/her endeavour.

No Proper Plan Of Financing

Sometimes startup owners get too enthusiastic about their projects and ignore the financial dimension completely. There are many online videos, written contents, and Startup development company one can find information about financing a startup. Most people trust these ways and start their ventures, and find themselves losing their ways completely.


The best way of avoiding the issues of such is to have a strong financial plan ready, apart from initial capital. Unless there is a financial plan available to support the business until it delivers profit, it would be a blunder to start a business in a tough competitive business scenario.

Getting Too Excited About Being Pioneers, Without Market Study

Startups often remain too excited about being pioneers or introducing unique products and services without realizing a substantial customer base. There remains no clarity about potential clients as well.


It is suggested to conduct proper market research to avoid the problems explained above for a specific segment. There is no scarcity of market research companies in modern times. Yes, they charge some amount for doing this market research, but it’s worth it.

Lack of Ground Reality and Political Hurdles

This issue is very much relatable for both product and service-based startups. Due to a lack of experience, specifically, to deal with the complex market politics and influence of local business organizations, most startups succumb to the pressure.


Instead of challenging the group of people cited above, startups should first aim to enter the market. In this context, they may propose some partnership option or any suitable deal to have a grip over the market.

Compromising With Marketing

Marketing is not taken as seriously as it should have been by the startups, which lead them to disaster. It’s seen on most occasions that startups compromise budget for marketing domain, which makes them stay behind the competitors.


They need to be strategic and smart in this modern era of digitization. At the same time, they need to be equally serious about traditional ways like referrals, door to door campaigns, etc. If budget permits, it would be a good idea to go with specialist marketing service providers during the initial days until they get the market’s proper hilt.

Upon addressing the discussed above aspects, any startup could attain bigger success than they dreamed of. It would be better to consult with experts about the above aspects before taking the big step.

Mobio Solutions is a Business technology Solutions company who will guide you with strategic advice on the technology that fits best to your business solution. We help enterprises to test and validate their business model by using Agile Development approaches. As a leading Startup Development Company, Mobio Solutions offers you 60+ proven IT specialists who possess various skills for the best MVP solutions. You can also select your own development team to rely on.

Originally published at on December 28, 2020.



Mobio Solutions is a leading and trusted Custom Software Development Company with a state-of-the-art development centre in Ahmedabad, India.

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Mobio Solutions

Mobio Solutions is a leading and trusted Custom Software Development Company with a state-of-the-art development centre in Ahmedabad, India.