What are the things that make many startups fold up after the first 2-3 years? I’ve seen how many small scale business kick off and before I know what happening, they’ve folded up. What is the cause of this failure?
Share
Sign Up to our social questions and Answers Engine to ask questions, answer people's questions, and connect with other people.
Lost your password? Please enter your email address. You will receive a link and will create a new password via email.
Please briefly explain why you feel this question should be reported.
Please briefly explain why you feel this answer should be reported.
Please briefly explain why you feel this user should be reported.
What are the things that make many startups fold up after the first 2-3 years? I’ve seen how many small scale business kick off and before I know what happening, they’ve folded up. What is the cause of this failure?
So many entrepreneurs out there are impatient, they want to achieve successful immediately they establish their business, which at the end of the day mostly causes the business to fold up.
Startups require significant time/energy investments for just a chance to succeed with zero guarantees. People that want to make a company great, as compared to people that want to work in a great company, have very different motivations in life. Passion to seeing through a vision/idea is what will keep the team going when times get tough, which are numerous and often times unforeseeable. The problem is, most entrepreneurs are forced to abandon their business because they have limited resources — time, energy, creativity, money, connections. Many entrepreneurs fail to see this. They believe the possibility of winning and making their business big is high. Thus, many entrepreneurs invest every resource they have into their master plan without protecting the downside.
Most people who start companies are people who are really good at what they do, and have a wealth of knowledge in their field. Often times, the company they work for couldn’t function without them, and they see what the guy on top is making and think to themselves “Why does he make the big bucks when I’m the one doing all of the work?” You can be a hell of a carpenter or general contractor, but that doesn’t mean you’ll be good at pitching to customers, consistently finding work, and balancing your books.
Majority of startups fail because they’re started by people who only understand the core of what the business does – not how a business runs. They don’t know leadership. If you don’t have experience managing people, managing cash flow, how to market, or how to manage everything else that falls outside of your work-knowledge, you will crash.