Reasons why start-ups fail

When it comes to start-ups, there are many reasons why they aren’t successful. Start-ups are risky and need a lot of attention as there are lots to think about. If you are planning to start your own start-ups then, read on to find more about how start-ups fail.

Reasons why start-ups fail

Your product is not in demand/ not selling

One reason why start-ups fail is that their product is not in demand. First, you got to think about the target audience of your product. The product could be focused on the customer’s wants and needs. This would mean they need to keep makings changes to their products or services and pilot them until they reach their customers wants and needs. They can use the feedback of each pivot and create a product that is in demand for the market.

Financial problems

Start-ups ran out of money either because the product wasn’t selling or the cost was managed poorly. This is one of the problems because they are less likely to be profitable at the start. Also, overspending could be an issue, so you need to decide what’s necessary for the business. The cost needs to manage carefully to ensure the company has enough money to survive. Many start-ups fail due to insufficient funds. Or maybe investors stopped investing in the business because it wasn’t doing so good.


Poor marketing

This is the main reason why start-ups fail. They have poor marketing skills which mean customers won’t be aware of their products. Start-ups should at least advertise their products or service on social media, email, websites and other services online. This also costs a lot to market the products or service. If the company or entrepreneur fails to market the product successfully, then the business might not grow as intended.

Lack of skills

The employees at the company may have lack of skills and experience. Founders should focus on what they are good at. They can apply their skills and knowledge to help the company run efficiently. This means that founders should hire the right people to do the job. Without the right skills needed the business will fail.  It is a good idea to have a diverse team with different skills which means they can share their skills and help the company succeed.


It is important that when setting prices of your products or service for your customer, it must be a suitable price. Most companies fail because they tend to set higher prices than others but if the prices are too high it will mean customers would want to go to others. But likewise, if they don’t charge enough they won’t make any profit.

How to avoid failing start-ups

  • Carry out market research
  • Business plan
  • Good team
  • Understand what the customers want
  • Manage finances

How can we help you?

If you are planning to create your own start-up company, feel free to contact us and we will provide you with the relevant advice and information that you need. Here at Carrington Blake, we ensure the absolute best for each and every one of our clients, Some Of The Services We Provide To Start-Up Businesses: Annual Accounts, Bookkeeping, Business Plan Creation, Company Registrations and Payroll.

Want to know more? Then please contact us on 0207 537 6628, or send us an email at

Related Posts

No Comments Yet.

Leave a Comment

Sign up for our Newsletter

Sign up and get the latest information

Your Name

Your Email