The Top 5 Reason of Startups Fail in India

Many entrepreneurs think they are building something very big and will revolutionize the world with their idea but in reality, 90% of them fails, and there are numerous of reasons for failure which we will dig into in the article.


In present time after doing completing his study, most of the people have diverted their mind from doing a job and thinking about to start his own. At the aggradation of doing something own he quickly takes decision to start a business and it is true fact in India that 90% of start-up are failed within five years because they take decision without doing research about his business without taking review and discussing with people, there multiple reasons for their failure and today we are going to explain top 5 major reasons behind the failure of a start-up.

1 No market demand for your product

It is important for a start-up to understand that what the market needs before starting to manufacture to a product firstly you have to visit the market and take the review from people, and need to know about your competitors weak points and also their positives, after analyzation make sure in your business you have to avoid these mistake and pre-plan the strategies to overcome those pain points and do the solution of these problems, developed and maintain the product as per customers review and satisfaction, company have to do upgrade yourself time to time as per market needs.

Market research is a must before launching or even start designing the product as it can help you in creating the right product for the right customers.

Taking an example of Gillette: Gillette is a US-based razor manufacturing company which manufacture products for both men and women.

When Gillette first launched in India it was assumed that it will occupy a good place in the market but it fails soon after the launch and the reason was “POOR MARKET RESEARCH”.
The hairs of Indian men are hard as compared to the US men’s and also the water is hard which Gillette never realized before launching and it became the reason for the failure.
Soon after the failure, a research team went to the market and also to individuals so as to find out what is the problem and why peoples are not satisfied with the product. After a deep research when they came to know about the shaving trends in India, also hairs and water problem they relaunch the product and this time it became a success.

This clearly explains that not even a startup but a well-developed company can fail if you don’t have correct market research.

2 Cost Issue

Companies fail when they run out of cash before they achieve their set objectives. Pricing is a most important reason behind the failure of a business, your product and services should be cheaper as compared to competitors otherwise you will face problem to makes new client or customers.

Cost is another biggest factor of startup failure and can’t be ignored, as if your product cost is too expensive no one going to buy it as there are several other options for the buyer.
Make sure the product is cost-effective.

3 Ignoring Internet Marketing 

Internet marketing or social media can’t be ignored as a large number of users are active on internet surfing through all social media platforms and this internet market can’t be ignored.

Ignoring internet marketing is another big factor behind the failure of many start-up companies in today’s time as 90 percent of customers and Clients are searching online for services and to catch the attention of the clients a company/start-up must have to make sure the business must have a strong online presence and for doing the same a start-up must have a website which can easily be done by hiring creative web design company. Many startups do not update their websites regularly, and in some cases, the content they display remains outdated or plagiarized as well, which leads to a loss of potential consumer who browses their website for the latest products in the market.

There is some Best Web Development Company in Delhi and MakeMaya is among them, their team not just create your website also the update it time to time also help and advice for gaining traffic in your website this can be a very big factor behind the success of a startup. 

4 Ignoring Customer 

Most of the start-up just convince clients and customers what they will do for him instead of what actually customer needs.

It is not a good idea to ignore the client’s suggestion and feedback, If you want to make new clients and have to maintain a long-term relationship with the clients, you have to pay your attention to each individual and take priority to every single suggestion and feedback, whether it is positive or negative every feedback is important. Assure your clients that your start-up will give one of the best services up to the highest possible level of satisfaction.

Taking feedback of your client will not only improve their trust and loyalty on you but it also helps you to make your product user-friendly and therefore increase your sales and competitiveness.

5 Poor Marketing 

“Marketing is the key to success”, It doesn’t  matter how great is your product but if your marketing strategy and business plans are poor then there are maximum chances that your start-up is going to fall down even before launching the product, company have to create and develop a strong marketing plan enclosing all the points on what will be the right time for launching the product, it not should be to delay or not should be to earlier.

For example:If hotstar, Ola, Uber, has launched in that time when no revolution of mobile in India there is the maximum chance this company is going to flop. Make a strong sales strategy and marketing plans before launching the and stickily execute marketing plans in the market.


Before initiating startup make sure to check all the failure points and try to overcome as soon as possible. You can also read tips for startup to set up a powerful team as the team is the core strength of startup and the biggest reason for success.