Even though the word start-up sounds cool but many start-ups shut down within a couple of years. But the question is do really an idea can fail? The answer to this is pretty simple that an idea can never fail, it’s the execution that fails.  There are various reasons that could be attributed to the failure of start-ups worldwide. It could be lack of understanding of public demands, choosing poor business models, inferior product quality, lack of marketing strategies and likewise. 

Obviously different people will be having their own stories behind what made their new businesses and start-ups collapse. 95% of the start-ups collapse due to some or the other reason. To list all of them is a bit tedious task but some of the most important ones that really help a person to understand what he or she should do in order make their ideas to achieve success are listed below:


There are thousands of dating sites and apps available on the internet and in spite of that, only a handful few names have survived like Tinder. The reason is not far-fetching as most of them are just copycats of one another with a few spins. If you really want to disrupt the niche, do something really unique, useful, and interesting that people never really imagined.

Reason for Failure – Lack of unique Ideas to capture large audience.


Reason for Failure – Lack of capital, difficult to orchestrate people into making a good product.


Most of the sites initially focus on delivering news which is taken from some 3rd party. There are hundreds of start-ups doing this which results in 100 irrelevant news ideas that at the end, fail.

Reason for Failure – tough competition, copycats don’t have a place in market. They might be successful sometimes but they eventually collapse.



Marketplaces are good start-up ideas only when you are exploring a less crowded niche. So many companies have tried to replace Craigslist and eBay but failed even though Craigslist is on the decline. Whereas, there are various freelance websites and platforms that have come up and made a place for their sustainability and scalability. Therefore, marketplace ideas in the crowded niches where there are multiple established are going to be a failure. If you still persist, you can choose one specific sub-niche of a crowded niche to capture the market share and expand thereon. But the fact remains that unless you are building your empire in an open field, you have chances of crashing down. 


Reason for failure – Heavy competition from established players in the already crowded niche.



The fact of the matter is Google, and to a much lesser extent Bing, own the search market. Yet, start-ups still spring up hoping to disrupt the incumbents. Cuil flopped. Wolfram Alpha is almost irrelevant. Power set, which was a semantic search engine was bailed out by Microsoft.



Almost all the start-up ideas designed to disrupt the established players like Amazon and other local players are sure to fail. First of all, the business model of e-commerce is highly risky. The discounts and offers can only be afforded by big players who get brand deals and huge advertisement revenues. A new player can't offer such huge discounts for long without running into bankruptcy.

Reason for failure – Poor business model. Huge funding required without any future promise.

So start-up ideas don’t fail. What fails is the style of execution. Before you start your start-up, make sure you validate and optimize your ideas and do a short trial run by hiring some skilled people from freelance websites. Only when your trial runs are successful, you can post freelance jobs to scale it up. Make sure you research well so that your start-up ideas do not fall into the category of frequently fail lists.




  1. What are the best ways to think of ideas for a start-up?

Ans. Ideas for a start-up are like the magic wands in Harry Potter: “You don’t choose the wand, it’s the wand that chooses you”. A start-up idea is derived out of discomfort or a gap you see in the existing market. So don’t go looking here and there for that billion idea, just be more attentive and observant while looking around you, it is right there.

  1. Why do people think of doing start-ups?

Ans. The No. 1 reason most people want to become their own boss is the freedom, satisfaction and flexibility it offers them. Every new business needs quality employees, but it can be challenging to attract the right talent to a start-up. Having a step-by-step plan in place can ensure a smooth on boarding process.

  1. Is starting a start-up worth it?

Ans. Fear of failure.
That's 90%. Still, these statistics are not here to frighten you but to show you that failure is normal in the start-up world. Moreover, it is accepted as a learning opportunity. You may start 5 businesses before you realize a true success; the first 4 will be just valuable real world learning.

  1. Is it difficult to start a start-up?

Ans. Start-ups are hard even if you are successful. The most important part of your start-up is your mind. If your mind is fragile, your start-up will be fragile, and any challenge will seem difficult. The only way to ensure that you succeed is by caring more about your start-up more than anyone else.