When you come up with a startup you cannot be certain about its success. In fact, 90 percent of the startups fail before they could become a shining star.
Some startups face a massive failure despite a great idea behind it, due to various reasons. In fact, sometimes even the most useful and seemingly revolutionary of the ideas turn out to be a massive failure.
Read this article to know about myriad factors that lead to the failure of startups which were initiated with great ideas.
Table of Contents
Hailo, a mobile application for calling cabs using your smartphone. It was similar to Uber but in place of having black cars with drivers, it connects you to the network of yellow cabs. It came into existence in 2011 in London and was doing really great until 2013 with over 100 million dollars invested in it. However, by the end of 2014, it crashed down drastically due to the following reasons:
It can be summed up that the major reason for its failure was imperfect marketing strategy and poor insight of targeting the correct audience.
Founded way back in 1998, Govworks(dot)com facilitated to connect the government with their clients. The concept was to facilitate the users with the payment and use of government’s producers and laws. Using this, clients would have been able to keep a track of their contracts, apply for jobs, pay tickets or hunt for city information. The corporate was doing fine and grew from 8 to a couple of 50 employees in 2 years.
Unfortunately, it too encountered failure, due to various reasons mentioned below:
India encompasses an immense population of 1.2 billion individuals. It’s undoubtedly a good marketplace for a laundry business. This was the concept behind the beginning of Doormint. They served on demand laundry services to people of Mumbai, Bangalore, and Gurgaon. The start-up was doing fine in the initial stage however presently things became unmanageable.
There were several reasons for the failure. Some of them are:
It can be summed up that the founders of Doormint failed to take into account all the factors before releasing their product. Or rather they unnoticed the factors like a household maid or the local dhobi. They created many assumptions concerning the matter that went wrong during the execution. Therefore it’s a recommendation to do an extensive research and analysis beforehand.
Everpix came up with a concept to sort and organize your photos in online storage. you need not trawl through many photos to look up for a specific shot. They used an explicit algorithmic program to sort and organize your pictures. Started in 2009, it managed around 55,000 users by 2012, however, broke down by 2013.
It failed thanks to a pair of major problems:
From their failure, others got to perceive that you have to be compelled to market your product. Though the aim is to deliver a product to the users, you also need cash to run your business. In such a competitive world, you need to do serious marketing backing your product.
These were examples of some of the startup failures. But you do not need to be worried seeing their failure, you just need to learn from their mistakes, and plan and formulate your startup accordingly that suits the market in which you are going to launch it.
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