There could be several reasons behind the eventual failures of even successful start-ups. A commonly cited such reason is having a static business model, without the managerial capacity to move on with the times. Another is having limited reserves to buttress economic shocks and downward cycles. Conversely, an inability to scale up during successful periods can prove to be equally harmful. Proactive investment must be done to foresee such trends such as by upgrading infrastructure or IT networks. Having the wrong people in the board of directors can be a recipe to failure. Sometimes in order to succeed at talent recruitment, not possessing the brand name of bigger companies, start-ups are coerced to overcompensate. This must be avoided at all costs. At times, the leader gets outgrown by the company itself leading to an abyss at the very top. Start-ups must also avoid getting too dependent on any one customer or segment believing this would last forever.

Source:http://innovationexcellence.com/blog/2017/06/25/top-7-reasons-your-successful-startup-will-fail/

Uploaded Date:05/07/2017