Business Development:

Start-Ups

Why Start-up Companies Fail

The 12 Reasons Why Companies Fail

By Terry Collison, Blue Rock Capital. Used by permission.

1. Inadequate planning of the business

2. Inadequate planning of the business

3. Inadequate planning of the business

4. Insufficient initial capital for start-up period and development stages due to inadequate planning

5. Mistaken estimate of market demand for product or service

6. Lack of management ability

7. Failure to select and use appropriate outside professional advisors

8. Inability to market product or services effectively

9. Over dependence on a single individual or on a predicted specific event

10. Failure to understand capital requirements of a growing business

11. Poor timing of expenditures due to poor planning

12. Expedient rather than reasoned decision-making