When considering the causes of startup failures, we should also consider the data from CB Insights, which found that 70% of tech startups failed.

The failure rate is much higher than the consumer tech startups, with 97% of the companies failing. CB Insights has deeply explored

the causes of startup failure through founders and investors.

The following are the 10 most common causes of products and services failures that the market did not want to appear in the previous position.

In the ranks of the proper people, the success of the right people to some extent ensures the startup, while in the case of incompetent people, failure is almost inevitable.

10 most common reasons why a startup fails:

1. Lack of Product Demand – In startups, what we often see is that many companies find their invention so attractive that its demand in the market will increase tremendously.

Most start-up businesses don’t understand what their product can achieve – especially at an early stage.

2. Lack of skills – Your knowledge should complement the capabilities of your team.

Always have a competent person in sales, management, and accounting, marketing, etc.

3. Avoiding monetary loss – Always try to have a lasting relationship with your suppliers.

Spend only on the essentials and don’t be extravagant about your company expenses.

4. Obtain Feedback and Criticism – Many founders find it difficult to show their prototype to others until they are fully prepared.

Feedback from potential customers is usually fatal for beginners.

Don’t be afraid that someone will steal your idea or that your prototype will not be perfect.

5. Market Ready for Product – Some companies start releasing products ahead of time.

At this time, either the product or the market itself is not ready for it.

6. Weak team, bad leadership – A good leader always controls to have a promising vision for the future of his company.

7. No real interest in the market you are operating in – you will have to work 60 to 90 hours a week with very little pay to succeed.

You cannot be hard-working and effective unless you believe what you are doing.

8. Lack of capitulation – people may always be surprised at how much they have to listen and spend time before they make any profit.

9. Weak Marketing – Noise is important and no matter how great your product is, it will not succeed if no one knows about it.

Poor marketing (or sales) is the root cause of many startup failures.

10. Neglecting Company Customers – Stress is never enough to describe how important it is to launch a viable product and get feedback from customers.