About the Interviewee: This article draws on insights shared by Nirjhor Anjum with the journalist.
Mr. Anjum is a seasoned tech startup and business consultant with nearly 24 years of experience, including 11+ years in leadership roles. He has worked with 18 multinational and local companies across India, Bangladesh, and the USA, successfully delivering 50+ software projects and over 200 web projects.
With expertise in Enterprise Solutions, SaaS, eCommerce, EdTech, FinTech, and eGovernance, he has guided startups in company formation, operational processes, and product innovation. Mr. Anjum, holding 40+ international certifications, has published notable research and mentored over 2,300 students. His academic background includes a Master’s in Software Engineering and Doctoral research in Artificial Intelligence, reflecting his commitment to innovation and empowering entrepreneurs.
With many years of experience in the tech industry, including government and private consultancies, various Chief positions, research, teaching, and mentoring, Nirjhor Anjum has witnessed the rise and fall of countless startups. In a recent interview, he shared his insights on the key reasons behind startup failures and how to avoid them.
Interviewer: Thank you, Mr. Anjum, for joining us today to share with us insights on why most startups fail. With almost 24 years of tech industry experience and having spent 11+ years in leadership, you have seen both the flourish and the falter. So, without further ado, let us begin with what, in your opinion, is most important for any startup to succeed.
Nirjhor Anjum: Thank you for having me. I believe the bedrock of any startup must be a clear vision. Without direction, it is so easy to lose one’s way and waste time and resources on things that do not matter in terms of growth. Entrepreneurs need to ask themselves where they want their business to go and how they plan on getting there. This clarity shapes decisions and ensures focus.
Interviewer: Startups always cite a strong team as the cause of their growth. What role does the team play in a startup’s journey?
Nirjhor Anjum: A startup is only as strong as its team. Hiring the wrong team – whether it is inexperienced employees, misaligned co-founders, or poor communication – can lead to disaster. One should build a team with the right skills and a shared vision. Equally important to the team is the company culture. A positive culture keeps employees motivated and reduces turnover. Otherwise, the morale will go down, and productivity will suffer. It is very important to build and protect an organization’s culture from day one.
Interviewer: So many entrepreneurs struggle so hard to grow their startups, yet burning out is so frequent. How can that be handled?
Nirjhor Anjum: Hard work is great, but overwork and burnout can be disastrous. Fatigue makes mistakes and poor decisions. Entrepreneurs and their teams need rest and rejuvenation. Regular breaks should be encouraged, and work-life balance should be promoted. A well-rested team is far more productive in the long run.
Interviewer: We know that strong leadership is crucial for any startup’s success. What are the pitfalls of poor leadership?
Nirjhor Anjum: Poor leadership and poor decision-making may sink a startup. Founders need to learn how to act in a decisive manner and meet challenges head-on. Weak or impulsive decision-making creates chaos, so it is important to have a leader that balances speed with strategy.
Interviewer: This is one of the pain areas for startups – financial management. What can you say in this respect?
Nirjhor Anjum: The most common cause of failure among startups is financial mismanagement. Startups should show good financial planning and avoid wild spending along with unnecessary debt. Always consider the implications of every financial decision.
Just as important, of course, is cash flow management. Too many startups tend to spend too much too soon and then run out of money. Entrepreneurs need to focus on managing their expenses intelligently and planning for the future. Having a buffer can keep the business afloat during tough times.
Interviewer: Many startups struggle because they do not fully understand their market. What are your thoughts on this?
Nirjhor Anjum: I strongly believe that market research needs to be conducted. Without knowing who the customers are and what their needs are, it is almost impossible to succeed. Time should be taken to conduct thorough research before launching. Customers should be understood, their needs identified, and the role of the product in their lives should be clearly analyzed.
Interviewer: What happens when startups ignore customer feedback?
Nirjhor Anjum: The foremost principle – ignoring customer needs – is a recipe for disaster. A startup exists for its customers, and that is why their feedback is the most valuable. If entrepreneurs do not listen to their customers, they will probably end up building something nobody wants. That’s why it is very important to keep customer needs at the core of all decisions and adjust based on their feedback.
Interviewer: I have heard that over-designing products is a problem. Can you talk about that a little?
Nirjhor Anjum: Absolutely. Overdesigning a product with too many features can make the launch process delayed and complex. Start with a Minimum Viable Product and improve it over time based on customer feedback. It saves time and resources while delivering value to customers.
Interviewer: The technology world moves fast. How does a startup keep up?
Nirjhor Anjum: Adaptability is the key. Technologies and market trends change fast, and startups are supposed to be ready to adapt whenever needed. For example, adopting advancements like Artificial Intelligence or Machine Learning can help startups stay competitive in a rapidly changing industry. Entrepreneurs should stay updated with industry trends and be flexible enough to adapt to them. Otherwise, inability to adapt may turn a business into irrelevance overnight.
Interviewer: We see that, even the best products do not always find an audience. How vital is marketing to startups?
Nirjhor Anjum: See, the entrepreneurs should understand that marketing can make or break a startup. Bad marketing means the target audience may never hear about a product, no matter how good it is. In this regard, entrepreneurs should develop an effective marketing strategy that is indispensable for reaching out to customers and creating a brand using the proper channels. In today’s world, digital marketing is very important as it helps reach more people quickly and efficiently. Moreover, entrepreneurs should use data analytics to make better decisions and understand what works best for their customers.
Interviewer: There is another challenge! Startups often find it hard to grow. How can they balance scaling up?
Nirjhor Anjum: It is all about finding the right growth pace. Growing too slowly may cause startups to lag behind competitors, while expanding too fast without enough resources may lead to chaos. Growth should be planned in a sustainable way, and it is also important to ensure whether the entrepreneur has the capacity to handle the expansion.
Interviewer: Another area where startups falter is legal issues. What should entrepreneurs keep in mind?
Nirjhor Anjum: Most startups overlook the legal documents, and that brings about huge issues in the future. Starting from contracts and trademarks to partnership agreements, everything must be normalized from the very beginning. Protection of the business from a legal standpoint is a must.
Interviewer: Thank you, Mr. Anjum, for these invaluable insights. Before we close, do you have any final words of wisdom for entrepreneurs?
Nirjhor Anjum: Starting a business is tough, but with the right attitude, it can be enormously rewarding. The entrepreneurs should take quality time, plan properly, and always think about their customer when making decisions. They should learn from their own mistakes and those of others. With persistence and smart strategies, a startup can grow into something really impactful.
Interviewer: Thank you very much for your time and expertise, Mr. Anjum.
Nirjhor Anjum: My pleasure to be here. Thank you for inviting me.
