Why do most businesses fail?

You might have seen how often businesses start and shut down. And this might have made you wonder why businesses fail so often or why is it so difficult to sustain as a startup.

So, below are the top 12 reasons why most startups fail, as per a report by CBInsights:

1. Ran out of cash/failed to raise new capital

2. No market need

3. Got outcompeted

4. Flawed business model

5. Regulatory/legal challenges

6. Pricing/cost issues

7. Not the right team

8. Product mistimed

9. Poor product

10. Disharmony among team/investors

11. Pivot gone bad

12. Burned out/lacked passion


It is imperative to know every business might come across a unique challenge or situation that prevents them from moving further.

As a startup founder or a business owner, it should be your priority to pre-plan for these challenges to sustain in the market and stand as an industry leader in the coming years.

So, are you ready to fight them all? Do let us know in the comment section.

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Aastha Kochar

Aastha Kochar

A freelance content writer who specializes in writing long-form articles that generate traffic for health and wellness, lifestyle and digital marketing brands.

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