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Rupesh Tiwari

In the Business of S... • 5m

Why does a startup fail? 1. Lack of Market Need The product or service doesn’t solve a real problem or isn’t something people are willing to pay for. Poor market research leads to misjudging customer demand. 2. Running Out of Money Startups often burn through cash too quickly before becoming profitable. Poor financial management or failure to secure enough funding. 3. Weak Business Model Not having a clear plan for revenue generation. Relying too much on investments instead of sustainable income. 4. Poor Marketing & Sales Failing to reach the right audience or ineffective branding. Overestimating word-of-mouth and underinvesting in marketing. 5. Competition & Market Changes Stronger competitors offering better products or services. Market shifts, technological disruptions, or new regulations. 6. Leadership & Team Issues Lack of experience or bad decision-making by founders. Internal conflicts or not hiring the right people. 7. Scaling Too Quickly Expanding before achieving product-market fit. Hiring too many employees or spending too much before generating consistent revenue.

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