In Brands, Insight

CB Insights looked at the post-mortems of 101 startups to compile a list of the Top 20 Reasons Startups Fail. All entrepreneurs feel they are building the next big thing, but in reality, 90% of all startups fail. The $532 billion beauty industry has been built on the dreams of entrepreneurs. Being aware and mindful of the mistakes others have made might just make you part of the 10% that succeed.

  1. No Market Need (42%)
  2. Ran Out of Cash (29%)
  3. Not the Right Team (23%)
  4. Got Outcompeted (19%)
  5. Pricing/Costing Issues (18%)
  6. User-Unfriendly Product (17%)
  7. Product Without a Business Model (17%)
  8. Poor Marketing (14%)
  9. Ignored Customers (14%)
  10. Product Mistimed (13%)
  11. Lost Focus (13%)
  12. Disharmony Among Team/Investors (10%)
  13. Pivot Gone Bad (10%)
  14. Lacked Passion (9%)
  15. Failed Geographical Expansion (9%)
  16. No Financing / Investor Interest (8%)
  17. Legal Challenges (8%)
  18. Didn’t Use Network (8%)
  19. Burn Out (8%)
  20. Failure to Pivot (7%)

Read the full details on CB Insights.

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