8. Inability to change direction quickly:

Often, entrepreneurs are found to be too clingy towards their products and do not like to drift away from their initial product.

Developing the right product in accordance with the market need and releasing it on time is very crucial for any company to survive. If the product never comes out of the development phase, it can easily lead the start-up demise.

9. Premature scaling:

Premature scaling is one of the most common reasons for a startup to fail. A startup spends too much on its machinery or hires too many employees without being able to predict the future or keep track of their finances. According to a report by Reuters, 70 percent of the companies showed some forms of premature scaling and estimated that 74 percent of the booming internet startups fail due to this. Premature scaling is the most prevalent form of a startup’s setback where they tend to lose the achievements much before they could reach a good level in the market.

10. Balanced teams work best:

This is one key factor for a successful startup; a good organized team would help manage things better. Teams with one technical and business founder help raise money of about 30 percent resulting in 2.9 times more user growth. This result in 19 percent less chances for premature scaling, compared to a large technical or business teams.

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