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Top 5 Reasons For Startup Failures

Top 5 Reasons For Startup Failures

Already build your own Startup Company? Good! You already start the very first step in becoming an Entrepreneur.

But expanding and maintain it? It is not an easy task...

Asides from the facts that there are so many successful Startup that emerge to the Worldwide nowadays, there are even more that fails. Based on Forbes, Startup Failures is at 90%. No kidding...


We, as one of the startup company in Web Design & Development in Indonesia are fully aware of this fact. That's why, we are aiming to always give our best to our clients and provide the best services. But sometimes, it might not be enough.

There are so many factors why startup eventually fails. It is very wise for us all to know what may causes it, so that we can avoid it and learn from it. 


Here are the top 5 most commons Startup Failures factors.


1. Unable to Fulfill The Market's Needs

This is the most main factors that will usually happen. There are so many Entrepreneurs that build the startup, merely because it is its owner's hobby. Means that, they fail to look what the market actually need. 

There is nothing wrong to start up the business based on your hobby (yes, our team has a flaming passion in Web Design & Development too), but still, once it has become a business, our customers or clients are the most crucial thing.

In the long term future, it would be of course a waste if our hobby somehow doesn't align with the market's needs. So, one of the best way in starting a Startup is by identifying the problems that always happen in the market. And be the startup that will provide the solution for that problem.



2. Out of Funds

This is the classic problem. Why? Because no matter what line our business are, it is still a business. It needs funds and capitals to survive. Many Startup Businesses eventually fail because they are out of funds, even worse just whey they are starting. It can be happened to any kind of Startup, whether it is personally funded or funded by other investors.

This problem may occur because the bad funds allocation system and the slow progress of the Startup.

To avoid this, make sure that we already plan the funds effectively and strategically.



3. Internal Conflict

Another pit hole that is dangerous will actually happen from the inside. No matter how desired or how good your business will be in the run, problem and hardship will always occur in some phases or times. This problem may rise some of the opinion differences between the Startup Owners. And if it is handled poorly, it can be the start of the business failure.

To minimize this risk, always ensure that each of the Startup Owners already know each other quite well, especially the expertise and the job description of each person. Additionally, always ensure that our employees have good and positive attitudes, besides just raw expertises or experiences.



4. Poor Execution

It is always exciting to come up with the new ideas in the business. While the creative ideas are important, the afterwards which is the execution is also important. How we will execute the ideas will also play an important role in building a Startup.

So many owners of the Startup have brilliant ideas, but don't have a good planning and execution process, which eventually lead to Startup Failures. To minimize this risk, always ensure that our ideas will be supported by real, planned, and considerable amount of effective execution. The effectiveness and the clarity of our execution will determine how our Startup will survive in the next ordeals yet to come. 



5. Ignore The Pivot (Concept Changing)

Pivot, by many Startups, may become a taboo and shameful incident. Because Pivot means changing concept, that will somehow, shift the main focus of your business (any may destroy some of our initial creative ideas).

Always remember that it is not about how your idea will work, but it is more about how to make your actual Startup works. Sometimes, we may have to change the main concept of our core business, and that's totally okay. Because the business that will survive is always the business that is adaptable to change.


So... hopefully after knowing these 5 pit holes that can make our Startup fails, we can learn more about it in order to make our Startups survive and expanding to be bigger and bigger.

And always remember to have a good Web Design & Development partners too. Because investment in technology, will generally help with these 5 problems that may occur. :)