Tuesday, September 4, 2007

Ten reasons why a startup fails.

Met up with young entrepreneurs (few going to be) at Chennai Open Coffee Club. It was nice to see young guys have started their own firm. I also observed an increasing and interesting trend where few starters have dropped out of college to start their own firm. Though most of their focus business was more like Google (online marketing/advertising), a hard technical based startup was obviously missing. The discussion started with ice-breaking session disintegrating in to smaller group discussing their ideals etc. With in hours of this meeting, Siddhi posted this on to Ning forum on reasons why a startup fails. Here are those 10 reasons

1) Poor Execution
2) No Viable Market
3) Too Much Leverage
4) Undercapitalizing the business
5) Lack of competitive advantage
6) Competing head-to-head with industry leaders
7) Picking a niche that is too small
8) Breakup of the founding team
9) Poor pricing strategy
10) Growing too fast

Here is the original article.


Interesting read though!!

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