Why Do Business Fail In The First 1 to 2 Years Of Startup

The business is unsuccessful in the initial 1 to 2 years of its existence due to five reasons and includes competition, innovation, finance, and lack of investors. long-term and short-term plans.

I will go over it in more detail in a moment Now, the biggest fear for new business owners is should they be able to achieve the goals they established for their business Now, remember that this time, you’re seeking investors for your business, you are creating your brand and image, you are building confidence from the public, so they are able to relax and carry your business and trust their money to your hands and consider your business as a source that they can count on to help their money increase.

There isn’t anyone on this earth who will be shrewdly invested in a location that is dependent on the locks to reach the desired location. Everyone is cautious when putting their money into investments.

If a startup company is able to attract investors they are convinced that it’s the kind of place the company can count on and where the money will be able to grow and where everything will be taken into consideration. This is why large companies and established firms have more people investing in them than startups.


One of the primary reasons that businesses fail during the initial one to two years of starting a business is because of the competition in the market. If you don’t endure the years what are you going to do to be successful in the business sector?

According to the data from statistics, it is estimated that there are hundreds of fallen companies each year from the USA alone, and the majority of them are start-ups. One of the main reasons that they’ve fallen is due to the competition. They were unable to stand to the weight of rivals.

We’ve seen a number of brands of phones change Some of them had great smartphones, but they couldn’t meet the demands of market demands, they are unable to rival brands who have already established an impact in the market which is why they’ll be in The fall.

If you do not wish to be a victim of this fate, it’s best to draw up strategies based on where you’ll be coming from. You should concentrate on a specific location to market your business and then develop your product as the market changes.

In the year 2010, Tecno smartphone company comes to life. What they focused on was Africa Then they ensured that they offer a low-cost phone that could be accessed by nearly everyone. And what did they achieve? They were able to achieve tremendous success due to their understanding of the market and had a strategy, and they also knew how to implement the strategy. Gionee launched just as Tecno did, Gionee has a better performance smartphone than tecno, so why did tecno launch it better than Gionee? The reason is that Tecno had better methods to carry out its plans better than Gionee did.


Another issue that new startups face is a lack of money Let’s face it, finance plays a variety of functions to play in bringing your business to the next level. If you are looking to grow your business, make sure to create a plan for taking control of your finances as well as good investors who are always in the best position to choose your business, and will also find ways to ensure that it is running for a long period of time.

When you’re short of funds, your business will slowly die until you are unable to keep it all together. Therefore, always make a solid plan for how to keep your finances running.


If you’re hoping to maintain your business, it is essential to be adept at bringing in innovative ideas and concepts that will keep people engaged in you, which is why Facebook has at least one or two features included in their ads on keep people engaged.

There are many social media platforms that have failed due to users becoming bored with seeing the exact same things frequently and often, so they began looking for new features as well as new experiences and additional features. If you’re innovating I would suggest you not go into business at all.

Lack Of Investors

We’ve talked about the role that investors play in our startup business We must find reliable investors in our venture or else our business will fail. it is essential to ensure that everything is checked prior to proceeding with other matters.

Short-Term and Long-Term Plan

You need to have a solid strategy to succeed in the field of business Make sure that your plans are clear and legal since if they’re not, you will fail within the first one or two years of starting.

Companies with well-planned plans have been proven to go a long way faster than companies that aren’t able to sustain. Therefore, my suggestion is that prior to launching your venture, you should make sure you sketch out strategies that you can be sure will succeed and then be sure to follow them carefully to avoid having to make any errors.

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