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Why Startups Fail in the Beginning
Startup 101

Why Startups Fail in the Beginning 


he failure of startups in the startup ecosystem is more common than success, unfortunately. The majority of startups fail at the idea stage.

Moreover, survival is very tough for a startup in every situation. There are several reasons for a startup being a failure. One entrepreneur must know about the causes of failure.

Why Startups Fail in the Beginning

If an entrepreneur knows about the origins of failure, it will become elementary to take the necessary steps to survive. Today, I have decided to describe several reasons for startups getting failed in different stages of this article. I hope this would be very useful to all the entrepreneurs present there. Happy Reading.

Unnecessary Product

Unnecessary product is one of the reasons for a startup’s failure. Most of the entrepreneurs at the first stage build products that barely have any need. They assume that there is a massive amount of demand in the market. Unfortunately, there is scarcely any need of the product.

It can be recognized as a rookie mistake for the entrepreneurs. Every entrepreneur has faced these kinds of problems at any stage of their life. Almost all the top companies have first generated a product or services that were unnecessary in the first place.

Here some of the startups that changed their products at different stages are given below.


We all have heard of Facebook, but only a few of us have heard about Facemash. Facemash is a website developed by the founder of Facebook, Mark Zuckerberg, at an early age. Facemash was supposed to be a dating website. 

Unlike Facebook, this website couldn’t attain so much attention. Not having the correct product at the proper time is a supposed reason of Facemash’s failure.


We all have watched TV series like “DARK” or “SHERLOCK” on Netflix. Netflix, the streaming giant, first developed as a DVD rental service. They also sold some DVD’s that time.

IN 2007 Netflix decided to change its business model. So, they came up with a subscription-based streaming site. And we all know the rest of the story. Now Netflix is undoubtedly the world’s biggest streaming giant.

Some people may say that the product Netflix wasn’t unnecessary then. But if we look deeper, we will find out that Netflix would become unnecessary soon due to the availability of high-speed internet, and other companies could have done the same thing even if Netflix wouldn’t come up with this idea.


Yes, this big giant company is not the first startup founded by Jeff Bezos. He founded zShops, an auction website. 

Jeff has faced too many failures in his early life. The zShop is one of those failures, although very few people know the story behind the zShop collapse. Jeff took his lessons from these startups failures and changed his ideas from time to time. According to some experts, this was the idea that led Jeff to amazon.

From the above discussion, we can deduce that having an unnecessary product at any stage of entrepreneurship isn’t bad. But this is very unexpected. It’s straightforward that no one is willing to pay for anything which is not going to satisfy the demand. 

According to Forbes, Startup Failure rate is 42% . So, an entrepreneur must-have products that are needed in the market. Though it’s not that easy to avoid an unnecessary product, an entrepreneur can overcome by taking necessary steps. 

Here some of the necessary steps are given below.

Conducting Sufficient Surveys

Conducting enough market research and survey, one can be sure of the need for the product. Asking several questions, analyzing the daily life of target customers can be an effective way. 

Another big question that remains is, “Will people pay for the Product?”. This one is a fundamental question for entrepreneurs who are at the beginning stage. Many of the ideas seem legit, but they fail.

It’s because people are not interested in paying for that, or the idea is not worthy of being paid. Startups that fail do not understand this concept.

Taking a professional business consultation can be an excellent idea to prevent these kinds of situations. A professional business consultant will help to find out the flaws and probability of the concept. Most of the businesses success depend on this matter. Moreover, they can advise making change anything if they feel the need.

Leaving Too Much Optimisticism

Being optimistic is a great thing, but not always. Being too much confident about the product is exceedingly harmful to the future of the company. Even many businesses fail for this reason.

One must also consider the flaws, limitations, and risks of the service or the product. In this case, having partners of different attitude is widely helpful. 

One must also see the competitors present in the market. The solution they are willing to provide must be more satisfying than the present one in demand. So, one must be optimistic but also have to look for the limitations, flaws, and risks.

5 ways to avoid startups failure in the beginning

Having a Swot Analysis Done

Having a swot analysis done is another way to avoid creating an unnecessary product. SWOT analysis is a process that will help an entrepreneur to find out the threats, opportunities, strengths, and weaknesses. SWOT will not only benefit having an unnecessary product but also from having a failed startup. SWOT can be beneficial for an entrepreneur at any stage and can save them from business failures

Knowing About The Culture

The problem may be genuine. But not necessarily the solution you are going to offer is going to be accepted. Sometimes, Society and Cultures restrain us from having the answer.

Solution Maybe Correct But Is The Problem A Worthy Problem?

Last but not least, it’s the most important one. Often to us, anything can be a problem, but to others, it isn’t. For example, a person may think that his neighbor is in trouble since his neighbor has to walk to his office.

Though this seems like a problem, it is not a problem. It is because that person who marches to the office for not having a car enjoys that. He is also getting benefited physically.

So, in short, we have to be sure that the problem is a real problem, why  startups fail in the beginning. If the problem is real, then we can offer a solution. 



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