What are the Causes of Failure of Startups?

It is very difficult to attribute the failure of entrepreneurship to a single cause. There may be various reasons behind the failure. The way to success is not the same in every attempt. In other words, there are different methods for startups carried out in different fields. For this reason, the reasons for failure vary from startup to startup.

Doing some of these reasons indirectly or directly may cause failure. So what are the reasons for this failure? These reasons range from capital use to effective team building. In other words, the truth of the matter is that the reasons for failure include many parameters. Sometimes making many mistakes at the same time or making a single mistake intensively can be seen as a cause of failure.

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Not Making Enough Plans

Before embarking on any startup, some plans should be made regarding the area to be operated. For example, failure may be inevitable if a plan that can act in the light of developments in any market is not made. Determining the target audience, following the promotion developments of the competitors and creating a plan in this direction can be seen as the first steps of a successful startup. In addition, it is important to use capital in line with a good plan. Otherwise, in case of unnecessary expenditures, it may be economically difficult and the startup may fail.

Lack of communication

One of the reasons startups faces failure is a lack of communication. This communication; It can be in all directions such as manager-employee, employee-employee, consumer-employee. If problems arise in communication, the emergence of some problems is also delayed and can create big internal problems. The importance of communication is undeniable, not only for startups, but also for all areas of life.

Lack of Capital

It is essential to have a certain capital in order to start a business and advance in that field. Having capital ensures that the business to be created will proceed in a secure manner. Otherwise, an environment that is difficult to cope with may occur and it will be difficult to stand and continue.

Acting Hopeless and Insecure

Every startup may encounter some issues and problems. These problems can be caused by some factors outside the business area or business area. The emergence of problems does not mean that it has failed. If you do not stay calm in the face of the problems encountered and if quick actions are taken, failure will be inevitable. In any problem experienced, it would be best to act rationally and proceed by learning from mistakes.

Not Having a Equipped Team

Perhaps the secret of success lies in this article. If the startup has a well-equipped staff, it moves in the right places and can multiply its earnings. However, if the opposite is the case, things may not go as desired. For example, the absence of competent people in finance causes risk taking at the wrong times and not taking advantage of some opportunities.

Considering the Short Term Instead of Focusing on the Long Term

Instead of thinking about short-term returns, thinking in the long-term context and advancing the startup in this direction will give more accurate results. Instead of getting immediate results, a long-term roadmap should be drawn within some planning. If the opposite happens, it may be difficult to see ahead.