Many entrepreneurs go into a startup with grand visions of selling their item in the first 12 months but don't have enough experience to understand market demand for their product.
Lack of funding is another common cause of startup failure. Investors will take longer to invest in a company if it doesn't show promise for return or the product doesn't catch on fast enough.
A flawed business plan doesn’t account for the types of factors that don't come up until later on in a business's life. This can lead to failure instead of success.
A team is only as good as its weakest link. Take the key staff for example, if they are well-qualified and always striving for excellence, then the organisation is likely to do well too.
One of the most common causes for startup failure is failing to learn from mistakes and adjust accordingly. If a startup fails to do this, it will eventually go out of business.
The most important factor in a startup is leadership. It's really tough to start and run a company without people who believe in it. When the management loses its passion or "burns out" early on, the company won't last long.