At first, People who own start-ups create a financial plan which very often looks completely different in reality. The reason is simply lack of experience in this field and they often do not ask/consult their ideas with more experienced start-ups.
Then, After receiving their initial profit from the business, they spend it on various things which brings completely no value to their project like a luxury office, designer wears etc.
They actually should spend it on making their products better at this stage.
They don’t monitor the competition in their market and not analysing the market they venture into.
They are not entirely focused on further developing their start-ups, As a result, the end users become frustrated when most features don’t work and they simply dump this product, and move on to a better one.
This is the big one: slow development of the product and business ideas and very late change in collapsing business structure .
Competition is extremely high these days and the only way to be ahead of your competitors is to release well developed, working Products and early restructuring ideas and plan as soon as possible.
Which of these categories of mistake to you fall in? It’s not too late to find out why your start up business is failing and deal with it. Consulting more experienced people in your field might is a good step towards perfection.