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Top 10 reasons why start-ups fail
By Kukil Bora, SiliconIndia
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7 Comments
3. Poor Execution
It's the fine execution rather than a clever idea that matters the most in avoiding the downfall of most start-ups. 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. Lack of funding
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 then plan for enough funds when you launch to cover all sunk costs, including startup losses, until your company becomes cash flow positive.
