Source | Entrepreneur : By Aman Jha
9 out of 10 start ups fail! Yes, it is true only 1 goes the distance. There are various reasons that lead to the failure of a start up. Well, considering those can help you save yours! We have analyzed the biggest reasons why start ups fail. The reasons are as follows:-
No market need
The biggest mistake start ups make is to solve the problem that seems interesting. The approach should be of solving a problem that can serve the market. With the identification of a problem that can serve a market you have the gates open to capture it.
Not the right team
A good team can make an average idea success but a bad team can fail even with an excellent idea. The team of the start up is its strength. The right team adds in a lot of energy to the idea and always has a positive approach to a problem. On the other hand the wrong team can never have good coordination and a positive approach.
Team building is a very crucial aspect for a start up. The goal is achieved when the right responsibilities are assigned to the right people and then finally those right people coordinate. With this right coordination a right team is created. You need to ensure that they have the coordination and the team member accept each other. It is very important that the team members respect each other as well as their work.
Pricing cost issue
There can be issues with the pricing of the product/service. If you are a start up you need to make sure that you never come across this issue. Always it must be kept in mind that you have competitors and to compete with the giants you will have to compromise on some things in the beginning. Hence, never allow this issue to bring your start up down.
Loop holes in the Business Model
The business model is the core of a start up. The base of a start up is its business model. With the help of a business model a start up implements its idea. It is great if you have a perfect business model which is a very difficult scenario. Many a times there will be loop holes in the business model. Identification of those loop holes is a very difficult job and after identifying those you need to find its solution.