There are many start-ups coming up every year. But not many will be successful in this market economy. Here are few brief reasons why most of the Start Up businesses fail.

1) Lack Or Insufficient Capital

Cash is always King! Lack of necessary funds to obtain a key infrastructure, or not enough cashflow to fund day to day operations. Having just a 90% of the necessary capital is not enough, one should have sufficient cash and more, on hand, before planning a Start Up business.

2) Poor Marketing

Marketing plays a pivotal role in making a product popular. Poor marketing, marketing to the wrong people or marketing through wrong channels will certainly affect a Start Up business. Entrepreneurs usually do not use their own network to make their product popular. A good marketing strategy always correlates well with the long term marketing plans and a well-accomplished business. Internet marketing should never be ignored.

3) Poor Management Team

A major problem behind the failure of the Start Up businesses is the lack of a good management team. A weak management team are often weak on strategy and end up in building a product which no one wants. The team which is poor at the execution of ideas will end up having a weak company.

4) Lack Of A Website

If you are starting up a business, then it should be followed up with starting up a website. In the US Alone, the number of internet users is almost 77 percent of the entire population in the World. It is now e-commerce which is expanding. So, merely having a website describing your business will certainly lessen your burden. Also one must make sure that the website makes your business look good.

5) Problem With The Product

Another important problem why the startups fail to succeed is that they fail to render the correct product which the customer or the market needs. One must know when to hit the accelerator pedal at the correct time and should revise the market strategies as the choice of customers will certainly keep changing during the course of time. If the customers are not really getting what we are pitching, then this might greatly affect the economy of the organization which in turn affects the startup business.

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