40 Reasons! Why Startup & Business Fails?


Are you dreaming of a start-up?  Or you have started a business before but it failed and lose all your time, effort & money.

Whether you are dreaming or have failed in starting your business then you have come to the right place.

Are you Alone?

No, you are not alone here there are many like you ironically I was also one of you who used to always fail. In fact, you may have beaten yourself for lack of motivation, not the following routine, hanging around with wrong peoples and so on but say no to all this thinking as this bring down your self-esteem and breaks you. Instead, you should give yourself much time in learning your goals and how to accomplish them.

“Accepting your weakness is an art” got this line while writing this blog.

You should accept your mistake and learn from it. Understand that you know nothing and learn every single day.

40 reasons why startup fails

So, the list is: –

Lack of management 

This is one of the major problems, people just think to start their business and they are the boss they can handle everything thus giving less importance to his employee which results in the overall operation of the company.

Poor marketing –

Failure by poor management, there is a number of reasons why marketing fails. One of the reasons is that people would have thought of making contact with as many people as they can and they will get more responses thus more sales .but this is not true you have to do marketing in front of the most suitable people and in the most suitable place with the right type of marketing campaign.

No Fixed Goals –

it is correctly said that “if you want to be happy and feel successful set a goal that commands your thoughts, liberates your energy, and inspires your hopes.” ~ Andrew Carnegie. Nothing can be done if you don’t have a goal set a fixed goal and HUSTLE.

Unable to win over the customer –

Or you can say poor CRM. This includes the type of service you provide to your customer or audience, the interactions you have, and the resources you share to match customer needs. Many people forget about this aspect in his or her start-up or business. You should focus on this at last everything depends upon how your customer or audience is feeling so make them feel more personal & good.

Weak leadership Quality –

Don’t be that weak leader with being docile, deferential, timid, or meek. While that may have some merit, weak leaders can also be bombastic, egocentric, domineering, dictatorial, and imperious.

Improper pricing –

Pricing is one of the most sensitive points that you will face in your work or business. You just base your price on cost, not on the customer perception of value also you should check on the market before implementing any change to your pricing. Don’t forget to check on how your competitor will react to youth’s pricing change.

Didn’t focus on branding –

Take BRANDING too seriously it is also one of the major things in your business or startup. I take branding as the no. 1 priority. Without branding, you will no be able to grow and gain the trust of customers or audience.

Starting Alone –

I would not say it is one of the demerits in business as it has many positive things the only problem here is that you will not be able to focus on the negative aspect of your business which will cause a problem in long term. Idea generation will be less, Amount of stress will be more.

Procrastination –

In simple words “electric fence in front of your success”. Honestly, I had a problem with this the & now too. It will bring filters to reality. fairy tale-like a filter where life is very much fair. Try to assign a specific time for procrastination to reduce it or if you can end it “All the best”.

Not reading books on business & Finances –

Not necessary to read but you can watch videos attend webinars listen to podcasts. But I personally think that reading is the best way to gain knowledge. For sure it depends from person to person.

You giving less time to understand your start-up

You are not successful! Why? Coz, you don’t know about your start-up you didn’t feel it you didn’t understand it. At least spend a 1-month time understanding your business so it can give you golden eggs.

Choosing the wrong place –

Wait! Thanks for going till here. For sure you have that enthusiasm of growing By learning. Yes now to the point think where is your business. Place plays an important role in the success of a startup. Where is your business located where are your customer or audience and many more do check the link to get details on places.

Didn’t divide your goals into days week month & years? 

There is one special chapter on this point in book 7 strategies to wealth and happiness by Jim Rohn (screenshot of the page).where he showed how important is it to always have a goal to be happy.

Poor time management –

“don’t let time control you, you have to control your time “. it will cause stress, increased procrastination, missing deadlines, you have to face many financial penalties, your reputation will not be good in front of peoples coz in this generation people are very busy they will not wait for you if you are not in time.

Overwork –

Never work out of your capacity. Nothing positive will happen it will just degrade the quality of work. And at free time chill or play some outdoor games.

Not paying debts on time? 

Don’t be that badass fool guy who doesn’t even remember the deadline to pay debts. Even if you don’t remember the date assign someone who will pay it.

Not being honest with self –

This is the same as making excuses that you don’t have time, money or blame some inanimate object. This shows that you are just not honest with yourself.

No plans –

I will not say “No plans” but yes you shouldn’t have poor plans only focusing on one point and forgetting others. For eg focussing on marketing but forgetting the finance part, and many other like this.

For sure you are happy with the sufficient knowledge 

You have lost that interest in gaining more knowledge. Learn and keep on learning make it a habit thank me in your 60’s.

Bad product –

If your business or start-up focuses on the selling of products make it the best in comparison to your competitor it should be best in looks, value for the price, and good experience for your customer.

Bad Service Experience –

If you provide service then you have to focus much more on product-based business. you have to completely satisfy your customer or audience by giving them the best experience at a reasonable price.

Do you run after money rather than doing work? 

Pause for a second and think what are you doing till now doing your work just to earn money or you work coz you feel good doing work? Focus on work be a consistent success will come to you

Expansion and growth are the primary goals of every entrepreneur, but an early evolution can lead your business to death. You must decide about growth only after carefully reviewing and analyzing all the aspects. Just keep in mind, after the expansion it will be much harder to manage your business, and you must do it at an exact time.

Advertising in front of wrong people –

this is like if you advertising for Lambo in front of low – upper-class people or you are advertising a middle-class tata nano in front of elite class & millionaires or billionaires.

Advertising at the wrong place –

advertisement is one of the crucial factors in business you have to be very careful in selecting your audience and place. While advertising many people forget about the place but it matters different region perception on different things is different so you have to be very careful.

The advertisement didn’t explain your product or service –

You have to make your advertisement campaign best according to me video ads or voice ads or any type of advertisement which can cause human connection and feel works best.

Easily giving up –

You should not give up so easily but you can give up under some circumstances. In your starting days just remember one thing before giving up life is not fair you have to work hard you have to hustle. Be with entrepreneurs read books stay motivated and work happily. Coz if you gave up now so easily you will for sure give up on every upcoming idea easily.

Lack of consistency –

You have to be consistent or else your interest will slowly fade out and cause a loss in your business. See this is a small thing but can cause huge damage .check on this article https://qr.ae/pNO29H by Himanshu Singh on how to deal with lack of consistency.

Poor management team –

Are your team members bad at communication, decision making, stubborn towards one’s idea, or lack of honesty then you have to come forward and fix it?

Running out of cash –

According to the CB insights report running out of cash is the 2nd major cause of why businesses and startups fail. How and when to raise money has always been a critical issue for start-up executives, who have to weigh the benefits of putting cash in the bank versus maintaining greater control and a bigger stake in their company. In the current environment, with venture capitalists pouring money into start-ups at the highest rate since the dot-com bubble, it seems that any company with a hint of momentum have investors knocking down doors to get in. But these cycles come and go, one thing to remember it’s always better to raise money when you don’t need it than when you do.

Didn’t focus on funding –

Yes your business idea is superb but it is true that you need some funding to grow fast. Though this point is not that much of importance you should look into it in the long term.

Customer care management –

Customer care is an aspect of customers relationship management. It refers to the management approach that seeks to create, develop and enhance customers services with carefully targeted customers in order to maximize customers value, increase loyalty and retain customers. If you miss this. Needs go unfulfilled, you are less considered, retargeting loss, based on your service customer can go as far to recommend not to choose your company.

Poor networking –

Networking is a socioeconomic business activity by which businesspeople and entrepreneurs meet to form business relationships and to recognize, create, or act upon business opportunities, share information, and seek potential partners for ventures. you have to actively participate in networking. To know other entrepreneurs, millionaires, and business people.

Lack of passion –

If you are not passionate do something different don’t do any kind of stuff after getting motivated by online gurus (how to earn $1000 in one month)

User un-friendliness –

If the user experience is bad people will go bounce off.

Poor pricing strategy –

Setting a price for a product is one of the most important decisions a company can make. But all too often it’s treated as an afterthought. Startups in particular have a habit of setting their price low to attract customers and never raising it, or keeping a feature free long after it’s clear people will pay. you have to figure out your strategy before bringing your business out there in the market.

No need in market –

If there is neither want need or demand in a particular market chances of success are 0.one option is that you have to make them aware in some particular business.

Oversaturated market –

You fish in a pond full of fishermen, here the chance is less to catch fish coz a professional will take all the fish. It is the same in business you have to be aware of the market and check how much is the competition be somewhere in middle.

Didn’t select your competition –

Yes, you have to take your competitor seriously. if you don’t focus you will not be able to grow as you will filter out your mistakes. See it is good in every field to keep competitors to be the other great personality.

Not being disciplined –

You have to be disciplined toward your work this will help you to be more consistent and help you to make more out of your work check out the link to know more about how discipline leads to success  https://www.entrepreneur.com/article/321379 



Businezvalue was founded by Johnny J Hembrom and his team, an enthusiast in learning business growth and designing.

After failing again and again in his business, finally, Johnny had made lots of fortune and want to help new business people & entrepreneurs, and learn from them.



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