Top Ten Reasons New Businesses Fail

posted by iHeart Media's Rachel Estrada -

This could be really helpful if you own a small business, or ever wanted to start one.

A new study looked at the post-mortem statements of 50 startups that FAILED for one reason or another.  A post-mortem is basically a rundown of what went right, and what didn't.  Here are the top ten reasons they didn't succeed . . .

1.  No market need.  42% of the statements included something about how there wasn't as much demand for the product as they expected.

2.  Lack of funds.  29% had to shut down partly because they ran out of operating cash.

3.  Not hiring the right people, 23%.

4.  Too much competition, 19%.

5.  Pricing and cost issues, so it was too hard to turn a profit, 18%.

6.  The product wasn't good enough, 17%. 

7.  No business model, 17%.  Meaning they had a good product or idea, but hadn't really thought through the details of how to run their business.

8.  Bad marketing, 14%.  Which could mean not enough or TOO MUCH marketing, and they wasted all their money on it.

9.  Ignoring customer feedback, 14%.

10.  Bad timing, 13%. 

(CB Insights)