Why do 90% of startups fail?

Contrary to a strong belief, according to the The Little Black Book of Billionnaire Secrets, only 42% of the startups fail because of the inadequacy of their product to market needs.

Probably much less, because most startups are innovative. By definition, innovation breaks with traditional market practices and adds value that only success can reveal.

As the author of the article says, most startup fails because they cannot focus on their business: First: “Getting caught up in the minutiae of presentations, phone calls, meetings, and emails can distract the entrepreneur from the heart of the business.” Second: “they ran out of cash”. Third: they do not “grow fast” enough. Fourth: they do not “recover from the hard-knock startup life”.

If startups have “product that meets a need, they don’t ignore anything, they grow fast, and they recover from the hard-knock startup life”, 10% will meet major success concludes Neil Patel. But even then, most will be redeemed and will feed the growth of existing large groups.

Removing all these negative factors is a pressing necessity for investments, growth and environment protection. Startups can become strong and attractive: they are usually small companies facing large and offer potentials usually much higher than traditional companies. To pose a problem is to solve it. The ecosystem must change.

PROBLEM: 90% of startups fail, of which many should have succeeded.

CAUSE: startups’ creators are weak because they are caught up in secondary problems, they do not have the finance to conquer their market and, when they face difficulties, they have no way out.

SOLUTION: let startups concentrate on their priorities, allocate the finance needed for their market development and gives them strong perspectives which are theirs so that they can overlook temporary problems.

https://www.forbes.com/sites/neilpatel/2015/01/16/90-of-startups-will-fail-heres-what-you-need-to-know-about-the-10/#19c4b51a6679

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