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Top 20 Reasons Startups Fail

Congrats! You survived COVID-19! Or maybe you didn’t…or is COVID still happening? I don’t think anyone knows. Nonetheless, your business needs you. Maybe more than it ever has before. Our legal team has put together some of the most common reasons that businesses start to fail. You would be surprised, as COVID-19 and the economy slowing down isn’t truly the reason businesses are shutting their doors. It had more to do with the fact that their growth strategies weren’t prepared for any type of slow in cash flow, billables, or accounts receivable. Once the first sign of economic stress came, the mental shift went from “make money” to “sell out while you can”.

See some of the most common reasons that starts ups fail below and see if your business development plan needs some tweaking. Our professional staff here at Scarborough Law would love to help in your business transformation.

  1. No Market Need

  2. Ran out of Cash

  3. Not the Right Team

  4. Became Outcompeted

  5. Pricing/Cost Issues

  6. Poor Product

  7. Need/Lack of Business Plan

  8. Poor Marketing

  9. Lacking in Customer Service

  10. Product Mis-Timed

  11. Lose Focus

  12. Disharmony of Team/Investors

  13. Pivot Gone Bad

  14. Lack of Passion

  15. Bad Location

  16. No Financing or Investor Interest

  17. Legal Challenges

  18. Lack of Network/Advisors

  19. Burnt Out

  20. Failure to Pivot

If any of these sound like your business, it might be time to re-visit the planning stages. Let us bring you the peace of mind you deserve. Contact us today!

wecare@scarboroughlaw.com

(678) 257-1808

Regards,

Stephanie Scarborough