Why 90% of startups fail within the first 5 years, three mistakes

Why 90% of startups fail within the first 5 years. Avoid These Three Mistakes

Today there are many such startups in the country which have made their place at the global level. For example Chai Point, Ola, Swiggy etc. All these companies are included in the 50 most innovative companies in the world. On the other hand, there is also a truth that a large number of new startups in the country are failing within a few years of their inception. Reports by IBM Institute of Business Values ​​and Oxford Economics show that 90 percent of startups in India fail within 5 years. Another study shows that 20 percent of small startups fail in the next one year, 20 percent in the next two years, 50 percent in 5 years and 70 percent of the businesses in ten years. Business failures are often attributed to economic factors, but there are many other reasons as well, which are generally ignored by entrepreneurs. Mukesh Ambani, one of the successful entrepreneurs of India, had recently advised the youth that despite limited resources, new entrepreneurs can make their place, as they have a domestic business as well as a global market. Here are some such tips that have been adopted by many startups to succeed.

working on multiple ideas

When most of the new entrepreneurs do not get initial success, they try their hand in other business. They fail because of the distraction. Whatever startup you have started, just focus on it until it becomes successful. Ignore other services. For example, Swiggy continued to do only food delivery till it made its place in the market. Only after being successful, he started delivering groceries too.

try to lead everything yourself

For a business to be successful, it is important to have an idea as well as how to lead the company as well as the brand and team. Most companies fail due to lack of good leadership. It has been told in the Harvard Business Review that a founding team can establish a large company, but leadership is most needed to bring it to success. You may have good ideation, but you may not necessarily be able to lead the team well. That's why it is important that you hire a good leader for your startup.

Losing Time in Perfect Hiring

According to an estimate, 23 percent of new startups fail due to lack of skills and better talent. New startups spend a lot of time hiring perfect candidates. Moreover, due to financial challenges, they are unable to hire experienced market professionals at a better package. To avoid both these challenges, prepare a recruitment model. Get the job you want executed as a test to select good candidates. To avoid financial problems, you can also think about other options like freelance, part time.