2. Poor management:

In most cases, new business owners don't have relevant business and management expertise in key areas like finance, purchasing, selling, production, and hiring and managing employees. This can soon lead to a disaster. Poor management also results in poor strategic thinking. To avoid that, there should be a regular study, planning and controlling of all the operations of a start-up. A successful manager is the key element to a company’s success, because he or she is responsible for creating a work climate that encourages productivity.

3. Lack of unique value propositions:

In order to boost the importance of your product, figure out at least four UVPs that will help you stand out.

It's the fine execution rather than a clever idea that matters the most in avoiding downfall. In order to make a crisp execution, a start-up needs to evaluate skills and should pursue opportunities that are aligned with its strengths. Not only start-ups, even established companies can also stumble badly when they outgrow the capabilities of the founding team.

4. No business plan:

Entrepreneurs mostly underestimate the amount of time and capital necessary to reach cash flow breakeven, which is the reason why many promising ventures shut down prematurely. It's very important to be conservative with financial projections and plan for funds when you launch, to cover all sunk costs, including startup losses, until your company becomes cash flow positive.

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