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The Reasons Behind Indian Startups Failure

In this blog, I’m here to state some of the reasons behind Indian Startups failure. Different circumstances but some common elements. Read on to know.

India stands 3rd on the largest startup ecosystem in the world. Every day about two startups are born. (Source – Startup India)

But, about 90 percent of Indian startups fail in the first five years. Why?  (Source – Money Control)

Every startup faces different circumstances, and many reasons could be the possibility. Well, we can’t blame circumstances as many people make mistakes. 

It’s a general human tendency, but it could impact on different levels. Sometimes one small mistake can shut the company down. 

So, let me list out the possible reasons behind the failure.

Indian Startups Failure Reasons

An Idea with no demand

An Idea to create something new or best is the foundation of a startup. If a startup comes up with the idea that has no demand is bound to fail. 

Being creative a coming up with products that can pull the audience is tough but be practical. There are many inventions successful that added value to human life. 

So, what are you adding? If you want some business ideas that are best for the current situation then check this. 

Business Model and Plan

A startup business model or plan has to be good enough to run and sustain the world. Startups won’t make it to breakeven point soon, so try to focus on the operations rather than money-making. In India, bringing new customers is tougher. 

In my opinion, a business can be set up with less than 1 lakh rupees. Watch my video to know more. 

Operational Costs Management

Costs are occurring while running a startup and managing these costs is important, which is called operational cost management. Spending more or less can affect the company in many ways. 

Wrong Decisions on ManPower 

A startup has to hire the talent at the time when it’s a need and can pay. Hiring staff and not able to pay isn’t right. Hire people who can invest the time that a startup requires.  

The above four are the common mistakes every startup does, and other than these, some reasons are depending on the type of startup

Those are 

  • No Technological Advancement
  • Not taking feedback from customers
  • Wrong-way of marketing
  • Unable to scale up
  • Unable to balance the demand-supply curve

And so on. 

Let me know if you found this blog helpful and also comment on what you want to read up next. 

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