Revealed! 10 Reasons Why Most Startups Fail

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BANGALORE: Anil Ambani, Ratan Tata, Lakshmi Mittal and so forth goes the list. What do you think made these entrepreneurs a rare breed? It's because very few entrepreneurs actually triumph in their endeavor. According to a research, 80 percent of the businesses shut down within the first three years of operation. This is surely abstemious for anyone tempted to invest their time and personal savings into launching a new business.

So what are the factors that turn out to be the obstacles in keeping a new business afloat in the perilous waters of the entrepreneurial sea?

Below are the top ten reasons, compiled by Rediff, which if not avoided, can sink a start-up:

1. Ignoring customer feedback:

For most start-ups, tunnel vision and not gathering user feedback are fatal flaws. If you ignore your users, it will be a tried and true way to fail. Listening to your customers, and more importantly, acting on the feedback they give is one of the best ways to transform a struggling business into a successful one. Customers are ultimately the ones responsible for the company's paycheck. By listening to their needs and desires, you can tailor your product and service to better meet their demands. This prevents you from going ahead with wrong product.

Also Read: Power2SME Raises Crores in Series CFunding

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