Today we thought we’d look at the negative side of the spectrum that is startups. Startups are the most popular form of business these days and everyone is starting one, but we’re here to give you a reality check. Just because you have a good idea doesn’t mean it will translate to a rapidly scaling model of business. Let’s take a look at the critical issues that cause a startup to fail and for more details, visit: https://www.noveloffice.in/blog/top-reasons-why-startups-fail/

2. TOPICS
Product market fit
Lack of funds and burning of money
Lack of the ‘right’ team
Poor business model
Arrogance

3. When conceiving an idea for startup,
it is very necessary and critical to an-
alyze the market details.
One has to be sure about the market
needs before creating products.
Until you’re not sure about the right
approach and right market, don’t kick
your startup into production mode.
PRODUCT
MARKET
FIT

4. LACK OF FUNDS AND BURNING OF
MONEY
Another critical problem with startups is a lack of proper budget planning.
Startups have two sources of income: Investments and Revenue only.
Without proper planning, one would burn up all the money from the revenue
earned, and fail the business.
It is critical and necessary to have a proper plan in place before taking your
startup into the business world.

5. LACK OF
THE ‘RIGHT’ TEAM
One of the biggest problems faced by startups is to find
the right team before kicking in the production gear.
Startups should quit waiting and hire a serviceable
team that they can mold into team players later.
Always keep in mind - happy employees are produc-
tive employees

6. POOR BUSINESS MODEL
If one does not start a business with the right model
there can be no scalability and consequently no pro-
duction.
An important metric here is : Cost of Acquiring a Cus-
tomer (CAC) and Lifetime Value of a Customer (LVC).
One’s CAC should be less than the LVC or else the
business model will not be profitable and will conse-
quently fail.

7. However, when it comes to arro-
gance, the problem is that young
entrepreneurs can have a tendency
to have their head in the clouds and
not think rationally.
They don’t do proper research for
their market and have blind faith in
their product.
ARROGANCE

8. CONCLUSION
Another critical problem with startups is a lack of proper budget planning.
Startups have two sources of income: Investments and Revenue only.
Without proper planning, one would burn up all the money from the revenue
earned, and fail the business.
It is critical and necessary to have a proper plan in place before taking your
startup into the business world.
https://www.noveloffice.in/blog/top-reasons-why-startups-fail/
FOR MORE DETAILS, VISIT

9. THANKYOU
VISIT
www.noveloffice.in