6 Reasons Why the Majority of Startups Fail

6 Reasons Why the Majority of Startups Fail

Startup companies are the pioneers of change, as they are responsible for creating new markets and improving old ones while earning a profit. But the success of startups is not something that comes quickly. It requires hard work and dedication. We always hear about the success stories, but it is important to know that about ninety percent of startups fail.

Several factors contribute to a startup’s chances of success or failure. Here are some of the most common reasons for startup failure.


1. Not Getting the Best Team Together

One of the biggest challenges that startups have to face is putting together a balanced, strong team. Startups need to have diversity within their teams, but while achieving diversity, they often end up assembling a group that fails to work together. The success of a new business depends on having a dedicated workforce with a variety of skill sets. The people you hire should be able to share each other’s strengths while compensating for each other’s weaknesses. Choosing the best people when hiring the first few employees is a challenge that can make or break a startup.

2. Failing to Study the Market

Startups are built on ideas, but it is important to ensure that the core ideas and concepts are achievable and practical. Many startups fail because they try to build a business around just a concept. But consumers are not going to pay for just an idea. They want complete products that are functional and that solve a problem they have. Failing to do a thorough analysis of the market also leads many startups to invest time and money in developing a concept that is not a good fit for the market. Ignoring the realities of what customers want leads to failure, so it is important to analyze the market while implementing the idea of a startup if you want it to succeed.


3. Creating Poor Marketing Strategies

Startups often fail to give marketing its due attention. Marketing is critical to the success of the business, so it is important to come up with useful and efficient marketing strategies. Businesses are only successful if they manage to attract customers, so it is essential to actively reach out to consumers through marketing. If you are selling energy-efficient refrigerators, then you can attract customers by sharing refrigeration guides that educate people about most energy-efficient appliances. There are so many offline and online marketing channels that you can use to promote your business.

4. Running out of Money

Money is also one of the primary reason for startup failure. New companies fail because they often do not take all of the required costs into account when they calculate the financial needs of their business. They come up with a starting cost and think that will be sufficient for running an established business. To plan ahead for your business, you need to think not just about start-up costs, but also about all the daily costs of running the business. You have to think about salaries, recruitment and other expenses. Plan ahead to make sure your business stays afloat, whether it is earning any profit in the first year or not. Getting a loan that will need to be paid back in the first few years of operation is also a bad idea. Most companies fail to earn big profits in the first few years, so make sure you have your financial costs covered if you want your startup to succeed.


5. Not Investing in Security

Investing in business security is important, but most startups ignore it. The risk of failure is reduced if the business is secure. There are three types of business security you will need to consider: legal, insurance, and burglary/cybercrime. You should secure the physical premises from which you are working so that you can keep the startup’s property and equipment safe. You should also invest in cybersecurity for your business.

Insurance and legal protection are essential to minimize the risk factor in your business. Without adequate protection, your startup may fail to survive any setback it encounters.


6. Losing Perspective

Startups can also fail because entrepreneurs are often so taken by their vision that they lose perspective. It is important to pay attention to trends in the market and to try to mold your image accordingly, because failing to adapt leads to many business failures. You should try to obtain investments from venture capital firms or angel investors who are familiar with your target market. That way, they can give you useful feedback and help you come up with better strategies.

It is important to spend some time understanding the reasons behind the failure of so many startups so that you can minimize the risk of failure for your own.

Featured photo credit: Bilan via

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Yasmin Rasidi

Copy Writer at Swotfish

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Last Updated on September 20, 2018

How to Be Happy at Work and Find Fulfillment in Your Career

How to Be Happy at Work and Find Fulfillment in Your Career

If you’re going to spend 1/3 of our life at work, you should enjoy it, right?

Trust me, I know that’s easier said than done. Difficult coworkers, less-than-desirable tasks, or even just being in the wrong position can all lead to a lack of enjoyment and fulfillment in your work.

But what if I told you it doesn’t have to be this way? Or better yet, if you struggle with all of the above (and then some), what if I told you that enjoying your work and finding fulfillment regardless of those obstacles is possible?

Don’t believe me? I don’t blame you because I was there too. Before implementing the tips below, I struggled to get through each day, much less find real fulfillment, in the office. Now, even after the toughest days on the job, I still come away with feelings of pride, accomplishment, and fulfillment. The best news is, so can you.

If you’re ready to make those hours count and find happiness and fulfillment in the office, then read on to find out how to be happy at work and find fulfillment in your career:

1. Discover the root(s) of the problem

For this first step, we’ll need to think back to 8th-grade physics (humor me). We all know Newton’s 3rd law, “for every action, there is an equal and opposite reaction.” When you think about it, the same can be said outside of physics, and we see this law play out in our daily lives, day after day.

Simply put, all the issues we deal with in the office (and life in general) affect us in a noticeable way.

If you’re appreciated at work, like the work you do and receive frequent praise, promotions, or raises, then this will probably have an altogether positive effect on your life in the office.

But what if we reverse this? What if you feel under appreciated, get passed up for promotions, or get denied raises? This is sure to affect the way you feel at work on a negative level.


So, before you can implement the steps of feeling happy and fulfilled at work, we first have to discover the reasons why you don’t feel that way already.

Think about it, write a list, or make a mental note. Run through all the reasons you’re dissatisfied in the office, and don’t hold back. Knowing the exact obstacles you’re facing will make overcoming them that much easier.

In fact, as a side-challenge to this article, I recommend picking the top three reasons contributing to your dissatisfaction at work and using the following tips to tackle them.

2. Practice gratitude for an instant uplift

Did you know the simple act of feeling grateful can increase your happiness and make you more fulfilled at work?[1]

Well, it’s true, and it’s scientifically proven.

Dr. Lisa Firestone notes that practicing gratitude “reminds us of what we lacked in the past.” Meaning, it serves as both a boost to happiness and a bit of a wake-up call that things have been or could be, much worse.

Trying to conjure up feelings of gratitude can seem almost impossible when your work situation seems bleak, but hear me out: There are incredibly easy ways to get started and it doesn’t involve trying to “force” yourself to feel grateful about things that stress you out.

For an instant pick-me-up, try this:

Find a loose piece of paper, a blank sticky note, or anything you can write on, be it physical or digital. List just three things that you are absolutely without-a-doubt thankful for in your life.

Now here’s the trick: Don’t just list what you’re grateful for, you have to list why you’re grateful for them, too.


For example, simply saying “I’m grateful for my kids” will probably make you feel good, sure, but what if we could amplify the warm, fuzzy feeling into real, lasting motivation?

Instead, write the reason you’re so thankful for your children. Is it because they make you laugh and forget about other stressors? Or maybe they help to remind you of why you go to work every day in the first place?

Whatever your reasons may be, jot them down and keep your list somewhere you can see it while you work. A quick glance at your gratitude list throughout the day can provide powerful, positive motivation to keep going.


If you can find just three things to be thankful for that specifically relate to your job, and list why those things make you grateful, your list can also help you find fulfillment in your work itself which can give you an even bigger boost of positivity throughout the day.

3. Take meaningful time for yourself

We all know creating a strong work-life balance can be crucial to feeling satisfied in our jobs, but rarely do we ever address how we’re spending our time outside of work.

Many of us survive a 9-hour work day and commute home only to find ourselves busy with our personal to-do lists, running a household, and taking care of a child (or 2 or 3, and so on).

If you spend all your time working, whether in the office or within your household, you’re going to feel drained at some point. This is why setting meaningful time for yourself every day is highly important.

Look, I get it: I don’t know anyone in the working world who can shun all responsibility for a 3-movie marathon or happy hour with friends whenever they feel like it. But finding time for yourself, be it just 30 minutes to an hour, can really make a difference in how you feel at work.

This works because you’ll have time to actually relax and let the day’s stress melt away while you enjoy something just for you. The to-do lists and stressors will still be there after you’re refreshed and ready to tackle them.


No time for me-time? Try this:

If you have a busy household, you’ll need to capitalize on a block of time you know will be completely uninterrupted. The easiest way to do this: try waking up 30 minutes to an hour earlier than usual (or push bedtime back an hour if you’re a night owl, like me) and take time to do something you enjoy.

This could be reading with a cup of tea, catching up on Facebook, spending time on a passion project—anything! As long as it’s meaningful to you, it works!


Starting your day with meaningful time for yourself can set you up to have a positive mood that lasts well into office hours, and having your me-time in the evening can give you something positive to look forward to during the day.

4. Get productive and feel accomplished

Don’t you just love the feeling of checking the last item off of a hefty to-do list? That’s because self-motivation can be a huge driver of positivity and success.

When we accomplish something, no matter how small, it makes us feel good, plain and simple. Applying this tactic to your daily work can be the motivator you need to find fulfillment during the daily office grind.

While there are tons of steps to get more done at work, I’ll share my personal favorite: Prioritizing.

Now, many people handle prioritizing differently. Some like to tackle the little tasks first so they can spend focused time on the big to-dos. Others like to knock out the big items first and get to the smaller ones when they can.

No matter which camp you’re in, you may be missing one crucial step: Time management.

So how’s this work? When you factor in the amount of time your priorities will take, it can transform your productivity ten-fold.


Say you have three top priorities for the day. You might jump into the smaller ones or the bigger ones depending on your preferred method, and then find yourself out of time and bringing work home with you at the end of the day.

This is prevented when you factor in time. Knowing how long each item will take, or deliberately setting specific blocks of time for your priorities can help you accomplish more in the same 8-9 (or 12) hours that you typically spend at work.

Try this:

Take a look at your priorities and consider how long they should take. Pop into your Google calendar (or Filofax, whatever works for you) and schedule time to work on your priority items around any important meetings or events of the day.

The most important thing to remember is to stick to your dedicated time.

Often, when we know exactly how long we have to work on something (and honor this time limit), we’re motivated to get more done on time to avoid taking work home at the end of the day.

The bottom line

There’s no need to waste 1/3 of our lives feeling unsatisfied at work. Luckily, you now have the tools to get started, take back your time, and become happy and fulfilled at work again.

The only question is — which tip will you try first?

Featured photo credit: Ellyot via


[1]Psychology Today: The Healing Power of Gratitude

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