Approximately 90% of startups fail. Within the first year, 10% of startups fail. Startup failure rates appear to be similar across all industries.
Startup failure is most common in years two through five, with 70% of them falling into this category.
Some startup ideas start casually during a daily conversation. Most of the startups fail and here are some that might seem like a great idea, but they are not.
Streaming service
The competitiveness is too big and maybe unreachable with services such as Netflix, Disney Plus, Prime Video, and so on.
These streaming services have an already built-up successful business model that is developed and perfected over the years. What is a streaming service? An online entertainment provider (music, movies, etc.) that sends content to a subscriber’s computer, TV, or mobile device through the Internet. Netflix, Amazon Prime Video, Hulu, Spotify, and Apple Music are all well-known examples.
However, there are a number of others. The free movie and TV services covered in the May 2019 issue of Consumer Reports include Amazon Freedive, Hoopla, Kanopy, Pluto TV, Roku Channel, Snagfilms, Sony Crackle, Tubi TV, VUDU, and Xumo. Many would consider it the next big thing, but it is actually not.
Dating applications
An online dating application is a mobile phone application that enhances the traditional nature of online dating by taking advantage of a smartphone’s GPS location capabilities, always-on-hand presence, and simple access to digital photo galleries and mobile wallets.
Despite the fact that there are over 5000 dating apps available, people continue to experiment with different approaches. The majority of them fail, but occasionally a hit (HowAboutWe, Tinder, etc.) emerges, igniting new energy and excitement.
The business model most of the successful dating apps have is fairly easy. Most of them are based on subscriptions for viewing who visited your profile and so on. People don’t want to give too much money for those kinds of things, therefore most dating applications are bound to fail before they even start.
Food delivery
A courier service in which a restaurant, store, or independent food-delivery company delivers food to a consumer is known as retail food delivery.
An order is often placed via a restaurant’s or grocer’s website or mobile app or through a third-party meal delivery service.
Most of the food delivery companies are online business-based. What is meant by online businesses is that they rely on their respective applications for people to order meals that they deliver to their doors.
However, similarly to dating applications, the industry is controlled by already established companies, and therefore it is not profitable to even start such a project. Food delivery is also considered a startup failure on our list.
Assuming that your idea is unique is a common mistake when establishing a new business. It’s not uncommon for people to have the same thought at the same time.
When you’re in this circumstance, one of you has to give up or adjust your mind in order to avoid conflict and avoid a lot of mistakes. Another common blunder made by entrepreneurs is attempting to do everything themselves.
If you have outstanding ideas but lack technical skills, you should look for someone to help you out. Starting a new company requires a lot of work and a couple of years of difficult decision-making. Additionally, a lot of money will be spent in order to reach the desired goals and avoid bad ideas.
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