Being observing startup and product development for many years either work or during the job search.By the way, they are not in particular order.
#1 Strategy is missing
Lacking in the what the product/startup should be?. Just because someone is hit (read Amazon, Flipkart, Google, Food Apps, Delivery apps, Oyo, AniBnb), you are starting the same stuff.
Just because zebra, is able to cross the roads, people think they have to be like zebra to cross the road. They will keep firms and product at cross-roads.
#2: Market doesn’t need product anymore
As mentioned above, overcrowded product lines, will make margin’s thin. Employees fly from one firm to other making salaries skyrocket.
At “no point of time”, team does not understand, what user’s need?.
Take the example of many “recruitment firms” or “websites”. It is really waste time to have so many firms working on this. No revenue margins.
Take the example of apps, web development firms, they are firms who can do the web site for a dollar. Keeping other firms out of business.
#3 Team you hire is not competent.
1.You hired your college mates, hostel-mates ( Read IIT and IIMs), girlfriend and boyfriends. They have “no clue” how the product work?.
2.Or you hired your local religion, same language speaking person, and your “YES man and woman”
3. You hired all developers or marketers or VC’s. There is no “combination diet”. You have not created departments or anything.
#4 Your founders, do not take the penny (as salary).
Now you imitate, steve jobs. Like him, your founder went to some ashram (devotional place) and realised, as he took the penny. You will also take the same amount. And you promised yourself, once you grow big you will take the salary.
Then you realise, even employees should not take salaries. What an idea?
#5 No funds
You have spent a lot of money in doing wrong product. And hired secretaries, fancy cars and conducted seminars and parties in heavenly place to get “facebook”, “twitter” likes.
You hire all kindergartners, who can do work at low cost. None of them experienced.
All above will blow-up your cash and funds.
# 6 User acquisition
Inability to acquire customers, as you are in the very crowded area (Product market). As your father, brother, the neighbour is working on same kind apps. You make an app to figure out what apps to use?.
There are fewer chances of getting users, because of above reasons
There are thousands of IMTITAION firms like Facebook-part2, Linkedin-Part2 and so on, which keeps you out of business
#7 Idea, Idea, Idea
You need the great idea to succeed. Big books stores collapsed due to amazon and all. Unless you innovate, you are bound to fail.
You need a firm or idea, which can be implemented and saleable
# 8 Timing
Start-up timing is bad, either too early or too late.
#9 Business model
Inability to change the model, and also no diversification. No revenue generation in whatever means?
#10 lack of trust
Trust between partners, VCs, Employees, Employers is not there. Lack of the common goal. Or too many leaders are there.
#11 Funding, funding, funding
People spend too much time and efforts on getting funding and celebrate and blow-up entire money in this process. No concentration on the product you are building
Funding is not the success.
#12: Building a product without “quality control”
#13: Plan for an exit at some point of time.
It means, keep things in control. You do not need to take offices with 10 years rental agreement. You can use cabs or rental cars, rather buying expensive cars.
You don’t need to invest money in building a fancy resort for employees. You can use as time-shared means.
No need to invest on servers/infrastructure, instead hire “cloud space” or take servers on the lease.
Hope this helps