A startup is an establishing enterprise whose success cannot be guaranteed. Any startup owner needs to have fair knowledge of consumer behavior, fool-proof planning, systematic execution and delivery of the right product/service.
Inappropriate Market Study
In today's technology-driven socio-cultural environment, an idea can revolutionize the world. A new innovative idea or a product/service sometimes may seem like a game-changer, and to an extent it is, but failure to read or understand the targeted customer proves to be the downfall of many a budding entrepreneur.
Under- or over-estimating the market occurs far too often and should be avoided diligently.
Failure in Calibration of Product or Service
If your product or service is not able to satisfy the customer's needs completely, then failure is obvious. You need to rethink the need of the consumer, and then revise the features of your product/service.
At times, you need to come up with a completely new idea or even change the complete concept of product/service needs to be changed. Sell what the customer requires, or if it's a new idea, then create the need or customer.
Failure to Focus on CAC and LTV
Now, this is about having a macro perspective, yet extremely vital, most newcomers fail to focus on the CAC (cost of acquiring a customer) and LTV (Lifetime value of customer). Attracting a customer to buy your product/service should be less expensive than the profit you are going to earn from them.
The state of the market and economy can be decisive in the success or failure of a startup.
For a startup, you definitely need a mix of experience and youth. You need trustworthy eager beavers to work with the same determination as you have for your company.
Remember, reducing risk at every step that you go forward will help your company in the long run.
Flexibility in thinking and operations play a key role in sustaining against tough competition. Hence, as a startup, adaptability is key to survival.
A good startup is primarily about choosing the right business at the right time. The moment you get going, there is a need for maintaining the creativity of your product or service (i.e., proper management). Even if you make mistakes, learn from them and perceive things positively.