With a 90% fail rate, it’s no wonder that very few startups actually make it past year two. But, given the entrepreneurial climate which has gripped the economy in recent years – mostly due to the saturated job markets and strong economy – there are more and more companies emerging to give it a go.
With that in mind, here are five of the most obvious reasons that a startup fails in the modern world. And, better yet, how you can work to avoid them.
1 – Cash is King
And some startups turn out to be peasants.
A harsh sentiment, but often the bitter truth behind many startup failures. They simply did not have the cash to keep going. Whether this is due to failing to secure strong investment from day one or a lack of sales during the life of the company, poor cash flow can hit hard …