Why are good tech startups failing?

Just because you have an idea in mind doesn’t mean you can build a business empire around it right? Is just the idea really enough? A few of the primary reasons why startups bleed out is incompetence to:
  • Identify if the idea is market worthy
  • Carry out sufficient competitive analysis of the industry
  • Analyze if the product/service they are looking to offer is exclusive
  • Identify a value bracket
  • Categorize budget restraint and why it’s crucial to stick to the resources at hand
If you ask entrepreneurs whose startups have failed at one point, you are likely to get many different answers, every one of them telling their stories from their personal experiences.

Few other insights why start-ups are faltering on their way up the ladder
  1. Inadequate Networking and Connections
  2. Lack of Managerial Experience
  3. Not Knowing Your Industry And Your Competitors
  4. Diminished Finances And Poor Cash Flow
  5. Inadequate marketing (not enough analytics)
  6. Poor IT infrastructure
  7. Marketplace Deterioration
  8. Lack of administrative experience
CASE : Why Food Tech Startups Fail? (Source: Som Speech)
1.The cost of last mile delivery was not properly understood (fail in unit economics)
2.Dependency on human is very very high in Food space, the technology will only help the business identify consumer however the people management is taken for a toss as the founders lack experience handling the day to day challenges.

Some of the greatest innovations have occurred as a result of individuals who are not afraid to try again with a new idea.


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