Countless startups fail every year. But there are certain reasons which cause them to fail. Some of them are listed below -
Most of startups fail due to poor could execution in a timely manner or due to lack of judgment. Sometimes, entrepreneurs work too hard on product/service features but too little with the market. They try to incorporate too many features in their product that takes time. They do not launch in time and as a result it's hard enough to build a user/customer base.
The other possible reasons could be failure to manage expenditures, to identify opportunities, etc.
Poor Management Team
Management is most of the times the heart and brain of a company. Poor management is a result of weak strategic decisions, communication gap between management and team, little or no work on product market fit and having bad hiring systems. The manage must be attentive enough for the proper execution.
Running Out Of Cash
Cashflow keeps the business alive. We can also call it spine of the business. No matter how passionate you are, how many users/customers you have or how great your idea is, you still need to pay dues to your employees, marketing agencies and clear your bills.
Some entrepreneurs fail to keep a record of accounts and hence fail to take adequate measures on time.
A great product is of no use if it hasn't reached the interested users. Nowadays marketing is not limited only to making more and more people aware about your product’s features but it is about creating marketing elements within the products and exploring unexplored venues. The marketing team must fulfill their responsibility otherwise they can fail miserably.