fail? startups why · fail? 7 quick reasons to the failure of startups "success is not final,...

WHY STARTUPS FAIL?7 Quick reasons to the Failure of Startups

"Success is not final,failure is not fatal: it isthe courage to continuethat counts."

Winston Churchill

9 Out of 10 Startups Fail

7 Reasons whichcontribute to the

failures ofstartups & new

businesses

NOMARKETNEEDA SCENARIO WHERE YOUSTART A VENTUREWITHOUT DOING MARKETRESEARCH

01

IDENTITYMARKETNEEDNo Market Need = No Revenue

Lessons At Startup

01

How to identifyMarket Need?MARKET RESEARCH

Who your customers are?1.

2. What they want or need?

3.How much they will pay for it?

01

RUNOUT OFCASHBAD CASH FLOWDECISIONS OR INABILITYTO RAISE FUNDS

02

The mostimportantword in theworld ofBusiness is"Cash flow".

02

How to maintain A Healthy CashFlow?

Always have a financial Plan

Keep a close tab on your expenses.

Always think twice before spending on your wants.  Remember, wants can waitneeds cannot.

02

NOT THE RIGHT TEAMTHE HUMAN RESOURCESTRUGGLE

03

23% ofStartups FailBecause of AnInadequateTeam

03

Get The Right TeamWith The Right Skills.

The right people are the most important asset of startups. Back the right team and thenraise the bar.

“Having the right team determines the path and outcome of a new venture more than any decision in the lifecycle of a company,”

03

Get Out-CompetedOUTWITTED BY COMPETITION!

04

Ignoring Competitors is also a recipe for failure in

19% of the startupfailures.

04

How to stay ahead OfCompetition!

Know the competitors  - Find your competitors and their offerings.

Know your customers. Find the demand of your customers  - is it lower price, more flexible service, the latest products? Revise your sales and marketing strategy accordingly.

Look after your existing customers.

04

PRICING & COSTSTRATEGYWHEN YOU WRONGLY PRICE APRODUCT!

05

We are competing in a very Price sensitive market.Price your product too high and you are in the process of losing the bulk of your customers. Under price, your products and you will be competing in a very low-end Market.

05

What is a "Bad Pricing Strategy"?

Poor Value Preposition

Setting too low prices to penetrate the market.

Setting high price, thereby risking affordability

05

POOR PRODUCTBAD OR INCOMPLETEPRODUCT

06

Building the wrong product is expensive and disastrous for Startups

06

How to develop agood Product

Build the right product before you thinkof building the product right.

Understand your product's valueproposition from the outset.

Ask the customer if he or she would useyour product not just if he or she coulduse it.

06

Bad Business Model

THE BUSINESS HAS NOTIDEA ON HOW TO MAKEPROFITS!

07

Failing To Plan Is

Planning To Fail07

How to design agood BusinessModel

Confirm that your product or service solves the problem.

Talk to industry experts and investors.

Plan and execute a pilot or local rollout.

07

“FAILURES CONTRIBUTE MORE THAN SUCCESS TO YOUR LEARNING CURVE”

Continue from this Presentation and read "Why Startups Fail" on a blog!

Learn from the experience of famous failed startups in India

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