Why only 1 out of 10 start-ups succeed

You must have noticed that in the recent years, there is an increasing number of start-ups launching. We’re currently experiencing a start-up revolution – whether it’s amazing new apps, gadgets or service that can make your life easier, entrepreneurs all over the world are now creating and inventing.

Unfortunately, with many start-ups coming up with their own thing, only 1 out of 10 succeeds. Brutal but it’s the truth. It’s a hard life for any start-up enthusiasts.

We don’t want to discourage you entrepreneurs out there with the cold statistic. On the other hand, we would like to encourage visionaries to work smarter and harder. And we’re going to bring you through some of the most important factors that might get you to the #1 spot.


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Fortune reported the “top reason” that start-ups fail is that entrepreneurs make products that no one wants or has low demand from the market. A survey has been conducted among the failed start-ups and 42% of them identified the “lack of a market need for their product” as the single biggest reason for their failure.

If you’re going to spend your time making a product, make sure you go thoroughly that it’s the right product for the right market. Whatever the business idea is, there needs to be demand for it.

It’s pretty clear that if no one wants your product, your company isn’t going to make it. But these days, many start-ups build things people don’t need or want with the false hope that they’ll be able to convince consumers otherwise.


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No doubt, hiring the right team is critical to your success. You want people who are doers and will get things done regardless of the resources or the challenges.

You also want team players who can take up other tasks as well. For instance, if your job is to code, that doesn’t mean you shouldn’t help out with marketing or brainstorming. Anyone who is part of the start-up team should not ignore these tasks just because it is not their job. 

Roles and responsibilities will overlap in start-ups. So, you might want to keep an eye on potential talents who can work as much as needed until something is complete. The most productive people are the ones who make the most of their time. 


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Getting things done in a quick manner is one of the many reasons why start-ups are able to reach their goals. It makes a big difference when a start-up is able to launch on time or when it’s able to move much faster than competitors.

You can’t be second when it comes to start-ups. Especially with the rate of technology development, the faster a start-up can produce its service or product, the better chance it has in delivering to customers. New businesses have to compete with established industries. Hence, to succeed is to reach out to consumers first with your potential product or service.

Thus, a tip to making your start-up successful, never delay the important processes of getting things done!


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Last year, Bill Gross, an American investor and entrepreneur pointed out that timing is the key to its success.

Successful companies such as AirBnB and Uber had used the timing factor well. Both launched during the recession when people needed extra cash. People needed extra cash so some people rented out their space and/or driving and picking up people to get more income.

So when is the right timing? That’s where a lot research and comprehensive understanding of your industry and competitors come in. If market research shows your product can solve a problem that no one else has, it might be the best time to introduce the market. But this is just an example. There can be many other factors going on so what you need to do here is do a thorough research and always keep an eye on the market and your potential competitors.