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Why People Give Up in Startups

Startups don’t fail because startups are risky. Startups fail because their founders often give up. One of the many reasons why the spark diminishes.
Even though the dream to build a startup has never been stronger (or more socially acceptable), most people succumb to low self-confidence and still see the whole undertaking as a house of cards.

why small businesses fail

Startups are hard since building a company takes time, effort, money, and a focused determination. But if the creators lack grit or belong to the category of people who get easily distracted, it becomes harder for the idea to survive. Founders need to have the fortitude to overcome obstacles and survive in the world of startups.

  • Is your product for the market?

The biggest reason why startups fail is that the creators completely ignore the considerations of product-to-market fit. Entrepreneurs often create a product that the market doesn’t want. Another reason for the start-ups to fail is that perhaps there were already better products out there. When an entrepreneur builds a product and realizes that it’s not something the user enjoys or wants to use, that is a clear indication of the death-knell for their startups.

Why People Give Up in Startups

  • Team members do not equal to the team

Following the reasons why startups fail is the team incompatibility. This depends on the bonding between the members and how the founding team works together. Most creators treat their startup as a baby, and their co-founder becomes their spouse. In fact, “Your team can make-or-break your startup” is a very famous saying in ‘startup-land.’ These are quick recipes for the failure of the startups.


  • Funding won’t stop you from sinking

Even the successful companies that land funding can find themselves running out of money. Even those entrepreneurs who have immense financial backing may find themselves worrying about whether or not they’ll be able to afford the rent on their co-working space next month. Thus, the reason why many startups fail is that the entrepreneurs fail to raise funding, or the initial investment didn’t last due to poor planning of resource allocation.

  • Marketing should be your armor

Another critical reason why startups fail is that the creators do not give enough importance to marketing strategies. If you don’t market properly, no one knows about your product, and so no one buys it. Spreading the word may seem like a waste of time, but it is fundamental for a business to survive. Most entrepreneurs who make it big consider marketing as important as the product.

why startups fail

  • Re-birth of an idea is challenging

The important yet unacknowledged reason why startups fail is that their founders get so stuck on their original idea that they feel married to the idea, and they’d do everything in their power to prove it can work. When they see their original idea failing, they find it easier to give up than to work on a newer and revamped idea.

The question ‘Why many startups fail?’ has been intriguing to the minds of many, and the common perception drawn is that startups are risky. They might be, but the above reasons also contribute to the gradual slow down of the growth-process; leading to the downfall of the startup. The truth is, it is not the startups which fail, it is the founders, the very pillars of the startups, which fail them.

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