9 Deadly Mistakes Why Startups Fail

Start-up founders blame CEOs, the CEOs blame research and development team. At the end, marketing people are to blamed who hold the recession responsible. At this present time, Startups has encouraged the millions of youth worldwide. Like there’s no one path to success, there’s not only a single mistake that will bring a startup apart. There are many reasons for it.

We have divided few mistakes below into 9 major categories. The categories include quotes from famous people. They are the people who knows the hardships involved before becoming a successful company.


Not all out of the box ideas work. Many do not see the light of day if they are set up for the wrong reason. Maybe because you have not thought it through. The product that you have designed may not serve the customers needs. Maybe, it’s not a product at all, you may just be selling and idea which needs time to develop.

At times, we see someone doing something and being successful drives us to follow the same path. It’s time to hold and think first before putting a step forward.One needs to have a business plan in place and realize competition that lies ahead of us.

Paul Graham – Co-Founder of Y combinatory & Viaweb

“The best startup ideas tend to have 3 things in common. They’re something the founders themselves want, they themselves can build, and few realize the worth of doing it. Microsoft, Apple, Yahoo, Google, and Facebook all began that way.”




It’s all red flags here if the founders do not plan their business in a proper way. Make a business plan, work out the financials and work on it. Always have a Plan b and Plan C in mind. Another biggest issue startups face is the desire to scale early. We get it, you want to become rich. Many people become overnight, but let karma work it for you. Give yourself and business sometimes.

John F Kennedy – 35th President of USA

“The time to repair the roof is when the sun is shining.”




Leadership is important in leading an entrepreneurial venture. Everyone cannot be a leader. Some startups choose the wrong person as a partner or a quarrel arises leading to complete shutdown of the business. If the leader does not want to get his own hands dirty, do not expect others to do it for you. It’s also not good to overthink and do things as well. A leader should be 100% committed to doing work.

If the leader is half-hearted, then he cannot motivate his employees to work as well. The leader is seen as someone who is a visionary and flexible. He should have gained some experience in the field before starting the work to understand the rules of business.

Steve Jobs – “Innovation distinguishes between a leader and a follower.”



Finance Management

Finance is the route cause of all evils. Finance related issues can hamper any business in the long term. Money should be adequate and keep flowing as and when required. One should maintain a clear account of all the finances. Startups with no inflow of money run dry and shut down. They must have over emphasized on the money but the reality turned out to be different.

Richard Branson – Founder of Virgin Group

“Well, I think that there is a fine line between success and failure. And I think if we start a business without financial backing, you’re likely to go the wrong side of that dividing line”.



Human Resource Management

Bringing in the right team is important for running the business. If you do not have a good team in place, then the work suffers. The customer is not always the kind. Employees are important too.

Lee Iacocca – Best known for making the difference for leading car manufacturers like Ford and Chrysler.

“I hire people brighter than me and get out of the way”.



Product Launch

Presuming the startups have done everything right so far, what next? It’s time to introduce the market to the consumers. But, there is a time for everything. Many companies build a product but share it with the world at the wrong time. Maybe if it’s the right time, the place of launch did not make any impact.

Walt Disney – Creator of Walt Disney Company

“The way to get started is to quit talking and start doing.”




Make sure your startup doesn’t lack these ingredients of marketing if you want to see it blossom. Using the right marketing strategy and tools are essential in the business. If the competitor is doing way better after you put all the efforts, then there is something wrong which needs reconsideration.

Seth Godin – Marketer and Public Speaker

“Marketing is no longer about the stuff that you make, it’s about the stories you tell.”




Expecting your startup to be successful from day 1 is living in a fool’s paradise. The sales goals should be clear in the mind and hearts of the salesmen. If you are facing no sales and pricing and cost issues, there is a serious problem. Hop onto point 1, if you feel you are in this zone. It would be appropriate to quote the Father of Advertising.

David Ogilvy – Advertising pioneer and founder of Ogilvy Group

“In the modern world of business, it is useless to be creative, original thinker unless you can also sell what you create.”

David Ogilvy


Operations Management

Slipped the operations sections? Be prepared for the ultimate startup failure. The major operations failure is the poor product and more focus on profits than the number of users. Completely ignoring customer feedback can be a huge blow to the image of the company. Also, thinking big a good, but only when you know it’s going to work.

Many startups face legal challenges which can hamper the operations of the company. It’s right to mention here if there is not good web site running there can be no real customers to handle.

Marcel Telles – Brazilian businessman and board of member at AB InBev.

“A company can seize extraordinary opportunities only if it is good at the ordinary operations.”



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