Start-up Success

80% of all Startups fail - here’s how you can avoid that happening to you!

Business STartup


You launched your new company, and it satisfied you. It cost bravery to break away from your boss and you can do your own thing without all the effort and red tape as from your old company. You don’t have to spend hours on end to write unnecessary documents that will lie around, and no-one cares about the content. At last, you can do your own thing.

Does this sound familiar? 

Be careful and look at the statistics around the success rate of startups in the United Kingdom. 

  • 20% of new companies fail in their first year.
  • 60% of new companies fail in the first three years of their existence. 
  • The survival rate for companies is only 20%.

A shocking figure, and before you start your business, note this high failure rate. It is important to get an insight into why those companies failed and how to prevent the same mistakes. 

If you ignore these pointers, it will cost time, money, and the possibility that your company will be part of the statistics. 

Reasons for failure:

  • 42% of startup businesses fail because there’s no market need for their services or products. 

Almost half of the new startup companies fail. This is an upsetting figure and if this is the reason for company failure, it just means that the owner/s started the business without doing a proper market analysis. How many times does a person had an innovative idea but does not know the market? Once the product or services are ready for sales, only then the barriers are visible. But with all the effort and money spent, it is too late, and then reverse engineering normally takes place. A desperate attempt to determine the market, just to realise that there is not really a market. 

Startup Failure Rates Graph**

Studies to measure product acceptance are crucial. This means proper testing of the perceptions, tastes, likes and dislikes of customers. Big companies like Coca-Cola, Pepsi, Google and even Colgate had some failures with a new product. 


In 1982, Colgate tried to expand their brand and enter the market of frozen dinners. It was a mammoth failure, perhaps because of the perception that the product will taste like their toothpaste! The worse thing was that their sales of toothpaste also plummet. 

The baseline is that you cannot enter the market with a new, or any product, without knowing what reception it would get from the customer. If you do not know how to do a proper analysis, hire a person, or company that can do it and get the results before you have financial losses because of oversite. 

  • 29% Failed because they ran out of cash.

A proper budget will help to plan the future. Research on each financial component will give an accurate picture. Your production cost will guide you in terms of your price for your product or service. With these figures at hand, you must do market research to determine what the price structures of competitors are. Can you compete with their prices?


The next thing regarding finances is to determine beforehand how to get hold of money if needed. Can you get a loan, a sponsor, a partner or what will be your outcome on finances? Where you will get the money from is one thing, but what do you have to offer in return? 


The best advice in this regard is to work with money that are available and not money that will come in, based on sales. Future sales are not a reality yet and only a dream. Once the sales money is in your pocket, only then it is a reality, and you can rely on it. Otherwise, you must find alternatives to finance your business. 


In context of finances another 18% of companies failed because of pricing and cost issues. 




  • 23% Failed because they didn’t have the right team to run the business.


First, I need to ask, why do company owners think it is a good thing to employ family and friends without the required qualifications, skills, and expertise? You try to start a business, not a charity event! 


There is no problem to employ family and friends, but they must adhere to the requirements for the position. The first problem is that small business owners do not see the need to have a proper job description, including all the tasks related to the position. Most small businesses do not have job descriptions. Without a job description, you cannot employ the right person for the job. 


Second, you cannot fix the wrong employment with training interventions. Training will cost a lot of money which will be unplanned, and not part of your business plan. You are trying to avoid the real issue of the wrong person for the job. Training is useful to enhance a person’s current skills, but it must be part of the budget planning and the company should have a return on investment based on the new skill. Only then is Training the correct solution.


23% Of companies failed due to the wrong team to drive business. Your good intensions can be your downfall, employ the right people. 


  • 19% could not compete.


Once again, a proper market analysis should have had figures, names, geographical location and more, to show what competition you will encounter. A proper plan on how to outwit and outplay the competition must be part of the startup strategy. Do you have a proper strategy?


  • 17% failed because of a poor product offering.


This is a true story of a business that ordered products from Japan. In the order specification there was a clause specifying that the product fallout (faulty products) may not be more than 2% of the total. The order was shipped and on arrival there were two consignments, one with the total number of products in 100% working condition and the other consignment was 2% more than the total, with faulty products. The latter was accompanied with a letter stating that they do not understand the fall out clause and produced 2% faulty products to adhere to the order! 


What more can we say - this is how your product offering should be! 


  • 17% Failed because they lacked a business model and 14% failed because of poor marketing.


Now we are back to the beginning and back to the basics. Whether you want to know it or not, without a business strategy/model and a marketing strategy you don’t know where you are going, and you can most probably end up no-where. 



After all the above gloom and doom there is, however, good news. There are several companies in the United Kingdom that specialises to assist startup companies. Global Village Worker is one of those companies. They have consultants that are senior specialists in this field, they can assist you to plan and execute the business. It is not necessary to be part of the failure statistics.


Knock on the door of – they are specialists in this field. Their slogan is:


“Turnkey solutions for businesses.” 

Are you a start-up that needs to get up and running quickly? Let us help you launch your business as fast as possible so you can outperform your competitors before they can catch up. With experts in all the elements you need to put in place, GVW can give personal guidance on what to focus on first and assist to develop the roll-out plan jointly with you.


Contact Global Village Worker:


Contact Number: +44 (0) 20 7082 5618


** - References: This amazing graph of businesses that fail came from an article here:




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