Here is Why Mobile App Businesses Fail So You Don’t Repeat the Same Mistakes

By  Zainab Agha

January 04, 2022 6:03 pm EST

The biggest fear of any app startup entrepreneur is whether their startup would fail. In order to succeed and scale, founders often find themselves dodging the mistakes past entrepreneurs makes and all the common reasons why app startups don’t make it to their first birthday. 

To keep you from repeating the bleak part of mobile app history here are the top reasons why startups fail. 

No Market Need

According to Statista 42% of startups failed last year because of ‘no market need’. That’s right. You could have the most brilliant sounding idea in the world but it means nothing if people don’t want or need it. 

A good app startup is one that is solving a problem. In order to make sure you do not start investing in and developing a product like this, you have to do the right market research and confirm that your idea is viable.  

No Funding

The second biggest reason why startups fail is because they are unable to secure funding, or are unable to budget right. This is a task that should take precedence in your business plan so that you know how much you need to kickstart your startup and then how much you would need to scale. After you do this, you have to budget for each department so you are distributing funds where needed. 

Most startups that fail do so because of this, often go by the flow and the philosophy of crossing the bridge when they would get there. Monitor your statements and cash flow and prepare for the tough times ahead so your startup can stay afloat. 

Hiring the Wrong People

It is surprising how many startup entrepreneurs do not regard this as a strong enough factor that could decide the fate of a business. Working with the right co-founders and people makes a lot of difference in how your business thrives. 

At every stage, you have people making small decisions for your business. You want competent professionals doing this so that the output is more than satisfactory. 

Vetting the Landscape

Startups who failed to plan how they would penetrate the market fail. When grabbing an opportunity in the market you have to do your homework on what your direct competition is doing. This helps you develop your very own differentiation strategy or what is also known as a unique selling point.

This USP can then be leveraged as your competitive edge so you can stay in the game and gain your own chunk of market share over time. 

The Wrong Target Audience

One of the mistakes app startups makes is that they list everyone as their target market. This simply cannot be so. You want to narrow down your demographic so that your marketing wing can track their behaviors and interests and then formulate campaigns that will promote your mobile app. 

Not knowing who you are supposed to be talking to makes you sound like a confused brand and your investment is often spread thin over a large target audience most of whom don’t want your app. 

Below Average Marketing

Allotting all your investment to the development team can cost you when the app launches. You have to balance out this budget with your marketing department as well. 

Consumers will judge a new product with very little or even no reviews with the marketing they are met with. They may even treat the quality of your ads as what the app might be like. 

A good marketing approach is one that uses an amalgamation of effective techniques. You cannot just go with what’s most popular. You have to research the platforms where your target audience is often and what methods would pique their interest.

Bad Design

Startups fail because apps are hard to navigate, have poorly designed interface, or are simply misleading. 

It is important that you impart vital information in a clear manner about what the app is about. Headers and icons should make it easier for people to understand what to click to go where. People’s intuitive behavior matters and can often be used to make an impact on your app design.


While it is easy to point out what really went wrong with a startup you cannot really blame one problem. It is often an amalgamation of things. One thing is clear that a lack of planning and preparation before developing an app has always led startups ending up in hot water. 

Zainab Agha

Zainab started her career in advertising as a copywriter; which taught her how valuable moxie was in the boardroom and translates that in her campaigns. Building brands has led her to explore digital marketing, communication concepts, and what it takes to grow an idea from scratch. In her free time (let’s assume she is a badass with balancing work and play) she travels in heels then complains, experiments with innovative creative solutions that sell, and does stand-up comedy.

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