Top 20 Reasons Why Your Internet Startup May Fail

internet business failure

It’s all exciting when you want to start a business on the internet, with the vision of living the internet lifestyle, but when you start hitting the ground realities, that’s when you’ve got to look into every aspect of your business.

Here’s the 20 reasons why your internet business may fail:

  1. No Market Need – Imagine trying to sell something which people do not want. It’s a tough game!
  2. Run Out Of Cash – This is the big one. Getting your cash flow in order is your #1 goal.
  3. Not The Right Team – Whether it be freelancers or full-time employees, you’ve got to get A Players on board.
  4. Get Outcomped – If you competition is tough, you better strategise on outplaying them.
  5. Pricing/Cost Issues – It’s always good to get advice from the market on your pricing structure.
  6. Poor Product – This is a biggie! If your product sucks… you lose… period!
  7. No Business Model – You’re in business for business… not for charity. Get real and have a business model in place.
  8. Poor Marketing: Learning how to sell stuff online is the coolest skill to acquire in today’s age!
  9. Ignore Customers: What would you do if someone walks into your door and you walk away? No money and no honey.
  10. Product Mis-Timed: Timing is everything. Watch this TED Talk by Bill Gross who’s studied hundred of startups, and his conclusion is that “Timing” is everything – the #1 factor.
  11. Lose Focus: You snooze, you lose. Chasing after too many rabbits will get you none.
  12. Disharmony In Teams/Investors: The perfect recipe for disaster. Misaligned vision can take you nowhere.
  13. Pivot Gone Bad – Not having the right strategy can cost you. That’s why I consult people first on strategy.
  14. Lack of Passion: If you don’t know why the heck you’re in business, then you better not be in it. Passion powers performance.
  15. Bad Location: This may be true for some business. But for an internet location in terms of where you want to show up matters a lot.
  16. No Financing: There’s no free lunch in business. You’ve got to tap into some resources to make things happen. Take those risks now. Invest in your education.
  17. Legal Challenges: Especially if you’re into products there IP is key, be sure you have the best lawyers advising you.
  18. No Network Of Advisors: Always good to have a board of advisors helping you make the right decisions.
  19. Burnout: If all of the above are not followed, it will lead to burnout. Working hard for nothing is a terrible feeling.
  20. Not Willing To Admit Mistakes: Let your ego not take over. Stay hungry and stay foolish.


The Hidden Reason Why Internet Marketers Fail?

Here’s a powerful video interview where Tony Robbins discusses with Frank Kern and John Reese on why internet marketers fail online. Grab your favorite beverage, sit back and watch this whole video.

Over To You! What You Do Think Are The Biggest Reasons For Failure?

Here’s a video of one of my mentors (who’s done over $200 million in online sales). I’m always amazed by how he’s able to live a life that’s super productive & and purposeful. Watch this video.


Share this post and help spread the love!
Share on Google+Pin on PinterestTweet about this on Twitter
Author Image

Hi, I'm Sidz. Dropped out of college, a Musician turned social media geek! Husband of a loving wife, a father, minimalist, international speaker & podcast host! I love writing practical stuff about improving one's social skills, happiness, productivity and awesomeness.

Facebook Twitter LinkedIn YouTube Pintereset

Make Your First $3000 Online. WATCH THIS DOCUMENTARY!

  • Zarna Shah

    This is so true! Never thought of all of here together. Anyone going further south could shut shop. Thank your For sharing Sid!

    • Siddharth Rajsekar

      Welcome Zarna!