Why Mobile App Startups Fail, & How to Avoid it When Beginning

Why app startups fail & How to Avoid
Startup Guides

Why Mobile App Startups Fail, & How to Avoid it When Beginning

Last Updated on November 25, 2023

Why app Startups fail? A question every aspiring entrepreneur must have thought about. App-based Startups are the new hot thing these days. The world economy has grown considerably, and recent technological advancement seems to flourish the tech startup culture at a tremendous pace. Every day lots of young entrepreneurs take on the startup journey to test their luck. Still, nine out of ten startups fail. It’s true. The success of a business depends on how well every related factor is handled. In this blog, we will explore why app startups fail and how to avoid them.

Before you turn all gloom, we are not saying that all tech startups are doomed to fail. How can we say that when we have hundereds of app success stories. We, Oyelabs, ourselves are a startup providing app development services to entrepreneurs and startups looking to build an app or mobility solutions. We have our own share of failures and successes and we have learnt and grown from all these experiences. In fact, we have covered business models of some of the most successful on demand delivery businesses across the world.

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But again, coming back to the point, majority of startups fail. However, knowledge can reduce your chances of failing and increase your chances of success. What that is.. that you should know before starting an app business? That’s what we are going to cover in this article. Let’s begin –


Why App Startups Fail – The Common Reasons

While thinking about the big picture, sometimes entrepreneurs forget little, but crucial, things to consider.

1. Originality of the ideas (Copy Paste?)

When you come up with an idea, make sure to check if it’s authentic or if it’s been done already. The reason why app startups fail is because, instead of pursuing something of their own creation, they are trying to find success in someone’s else’s idea. It is not wrong to take something that’s already there. If it’s a good idea, make sure if your application of it is offering something unique to your customers. It should have its own USP (Unique selling point).

2. Floating with the flow

If you’re thinking about launching an app as your startup, it’s a great thing. But ask yourself whether or not, you’re doing it just because it’s the trend. It is not a bad thing to follow a trend. If you want it, do it. But don’t do it just for the sake of following the hype. Your aim should be to navigate your startup on the tides of competition to rise to the top. To do this, you need creative and unique thinking. Ask the advice of peers. Go out and explore the scene for yourself. Get a new perspective. Be ready to hear criticism, but don’t get disappointed. Make your own mind!

3. Lack of R&D

Having a good idea is a start, but it is not enough. Lack of preparation is often the cause of bad formation, and in worst cases, failure. Try to know as much as you can about your project. Think market condition, competition, growth possibilities, investment, and so on. Map out your whole project and set your target and checkpoints.

4. Poor team-structure

One of the most important things for any startup is the passion its employees have for taking it ahead. If the team is on varying levels of commitment to the goal, the process can stretch. If you aspire to achieve success, every wheel of your startup cart needs to be in sync. It should be your goal to get every men=mber on your team to the same level of commitment as you. Make sure to recruit wisely.

Your success depends on it. Your employees should understand that in the beginning, the effort is more and prize is less. Everyone can and should contribute to the process, keeping company’s objectives and their role in mind. Be firm, but don’t be a hardass. Guide them, and try to provide an environment conducive to good work. Encourage your team and be a mentor who guides by doing.

5. Unfortunate-timing

There’s a saying “being early is the same as being wrong.” same goes for being too late. It happens sometimes that you get an idea, and it’s a good app idea, but still it doesn’t work. If you have an idea, but the world is not ready for it, what do you do? You keep that idea in your pocket for the future or try to find its application in today’s context. When you are beginning consider today’s market demand and supply structure. There is always a way to mould your idea into what today wants. Better yet, think of today.

6. Lack of proper Business-Model

Lack of proper design is always going to make things hard for you. You cannot just hope to put everything in order later, without having some sort of base structure. You need to have a well mapped out business-model to share with your team and future investment prospects.

Investors want to know exactly what they are getting into. Only when they are convinced of your business’s potential and huge returns on their investment they are going to provide you with their money. Also, Your business model is your map to your goal.

Along with that, it’s what you have to show to people who you want to involve in your journey. Without it, it’s easy to lose direction. These are some of the points to the question of why app startups fail, or get shut down, along with points to keep in mind when beginning. It is very important to understand that opening a startup means giving it your best shot. Whether you do it all by yourself, by crowdfunding, or with the help of angels, you are going to need a proper system to navigate your ship.


Oyelabs – True Partner of Startups

Oyelabs stands as the unwavering ally for startups embarking on their journey in the fiercely competitive business landscape. As the catalyst for success, we offer more than services; we provide a true partnership. If you’re seeking a genuine companion in your entrepreneurial venture, contact us now. Our commitment goes beyond solutions – we are dedicated to propelling your startup towards success. Trust Oyelabs to be your strategic collaborator, guiding you through the intricacies of the business world and ensuring the foundation of a prosperous and enduring venture. Begin your journey with us for a transformative and successful entrepreneurial experience and avoid the evil question of why app startups fail.

Unlock the potential of your startup with Oyelabs as your dedicated partner. We go beyond services, offering strategic collaboration and guidance. Embark on the road to success with us – contact now!


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