How many startup fail

Wrong Market : Too many people try to start a business targeting everyone as their demographic. Next, they try to target everyone in their town. Again, too broad. The more narrowly defined your niche is, the easier it will be to market to the right audience. Lack of Research : You have to know what your customers want. Too many would-be entrepreneurs go into the market thinking they have a great service or product to offer, but they fail to realize that nobody wants that service or product.

The Small Business Administration considers a business a startup when it hires at least one employee. Bad Partnership : Often, when starting a business, a partner is needed. One of you is an expert in one area, and the other is an expert in another one. Your ideas for the company will conflict, and without a clear resolution, it starts internal strife. You work harder and your partner works less, but your partner thinks they are working harder than you. By having a clear business plan that lays out the duties of each partner, you can avoid most conflicts before they even arise.

Bad Marketing : It could be said that a business boils down to two aspects: marketing and bookkeeping. The sad truth is that most entrepreneurs know their craft and little else. Instead of fumbling through your marketing campaign, hire out that aspect of your business. It costs money, but if done right, it will bring in much more than what you spent. Not an Expert : Too many entrepreneurs start their business because they need a job. The sad truth is that without business skills and real expertise, these entrepreneurs are destined to struggle.

It seems that most businesses are destined for failure. Set Goals : Know exactly where you need to be and where you want to be. Research : Know everything about your market. Know what customers want. Know their incomes , their desires, and what makes them tick.

The more you know, the more you can pitch to them. You must be passionate about your business, or it will just be a job. There will be periods when things are dragging along and you question your decision to embark on this path. This is a time to put in extra hours, press harder, and make it work. Approximately 11 out of 12 businesses fail. You may opt-out by clicking here.

More From Forbes. May 13, , pm EDT. Feb 5, , pm EST. Jan 14, , am EST. Dec 10, , pm EST. Nov 10, , am EST. Nov 3, , am EST. Sep 9, , pm EDT. Jun 30, , pm EDT. Edit Story. Jan 16, , am EST. I cover entrepreneurship, conversion optimization, marketing and sales. Neil Patel. Read Less. And while these reasons stopped some companies from reaching the pinnacle, you can be sure that they did not stop 8 out of 10 startups in the first 18 months.

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Conor is the Senior Writer for Tech. He's written guest posts for the likes of Forbes, Chase, WeWork, and many others, covering tech trends, business resources, and everything in between.

He also cannot pronounce the word "colloquially" correctly. You can email Conor at conor tech. Replace a site. Home News. Share this post facebook linkedin flipboard twitter whatsapp. Did you find this article helpful? Click on one of the following buttons. Yes No.