Why Do So Many Online Startups Fail?

0 comments, 23/06/2016, by , in Start Up Businesses

Business OfficeEvery day, thousands of businesses are launched. In both the physical world and online, businesses face a variety of challenges from day one. This can result in plenty of pressure on owners, employees and the bottom line, and many businesses don’t survive. In fact, a majority of businesses fail within the first couple of years, and that number is even higher in the digital world. The real question so many entrepreneurs ask is “why?”. Whether you just opened an online business, are planning to do so or own a successful endeavour, you’ll want to continue reading to find out why so many online startups crash and burn.

Bad Customer Service/Social Interaction

Startups must make good impressions across a variety of mediums initially in order to be successful and sustainable. From interviews with industry leaders to press releases and marketing material, any startup that doesn’t invest in providing great customer service, social media promotion and marketing, and personable frontmen will fail to catch on in the same way as other startups with these benefits. Pinging your website, media outlets and customers with any lacklustre signals in this regard will weaken your startup’s ability to persuade, and this can definitely lead to failure.

Poor Timing

Many people have a vision and a dream, but fail to act at the appropriate time. Everybody has remarked at one point or another, “I had that idea years ago!”. Unfortunately, all too many online startups wait until it is too late to get a head-start on the competition, and enter the market just as everybody else with the same idea is doing the same. This dramatically increases the likelihood of failure, as there usually isn’t enough demand to sustain all of the startups offering the same thing. If you have a great idea, seize the opportunity; do not wait until others have done the same.


Many startups – from the smallest endeavours to those with massive investment – can easily fail due to a fading dedication over time. Many entrepreneurs start out with the best of intentions, micromanaging every aspect of the business. Over time, however, this enthusiasm can fade and with it, the ability to continue successfully delivering results. Online startups in particular require constant dedication in the form of pinging your website with content, customer satisfaction, price competitiveness, marketing and several other areas. Those who get burned out will watch their startups suffer the same fate.


Last but definitely, definitely not least, the ability for startups to raise capital in the initial days, weeks and months can determine whether it will survive for the long-term or fall into oblivion. Even startups that can generate profits immediate may find themselves in need of capital for expansion or marketing efforts. Without access to consistent capital, many startups fail to expand and simply wither over time. This can be a slow and painful death – more so than the rest – and can prevent an otherwise successful startup from achieving greatness.

Have you recently formed your own startup or are planning to do so in the near future? What are your biggest concerns about the road ahead? Tell us about them below and share your insight with others!


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