Being at the helm or even just working as a member of a new startup company can be very exciting.

At that early point in the company’s life, the possibilities are seemingly limitless. You can’t help but think about how some of the most successful companies in the world today had similarly or perhaps even more humble beginnings, and yet, they were able to thrive and eventually dominate their respective industries.

It’s hard not to dream that something like that could also happen to your startup.

Unfortunately, success, let alone industry-changing success, is far from guaranteed in the world of startups.

Via Investopedia, the Small Business Administration notes that 30 percent of new companies fail within the first two years of officially opening. By year five, that number soars up to 50 percent and by the decade mark, nearly two-thirds of those companies have already closed.

So, what exactly is going on?

In this article, you’ll learn more about the top five reasons why startup companies shut down not long after opening. Hopefully, you’ll be able to avoid them if you’re starting a company yourself.

Reason #1: Not Being Properly Prepared

Saying that the reason why a startup company failed is because they weren’t properly prepared for what they were getting into is not that revelatory or insightful, but it is nonetheless factual in many cases.

According to Small Biz Genius, a previously conducted Statistic Brain study had “incompetence” as the reason for why 46 percent of companies eventually failed. In this case, “incompetence” refers to various shortcomings on the part of the people running the startup.

Incompetence in this scenario also translates to just general unpreparedness, and it’s easy to see why so many startups can fall victim to this problem.

People can get so wrapped up in the excitement and hype surrounding the official launch of the company that they forget about all the responsibilities that come with being a founder or CEO. They may forget to file the paperwork necessary, fill all the necessary positions, or even just come up with any kind of comprehensive business plan.

That’s why it’s a smart move on the part of many startups to work with companies such as Fazt Tech to ensure a smooth launch and minimal problems as they try to get their legs under them.

Reason #2: No Market for the Offered Products and/or Services

There are certain things you simply have to do before you decide whether or not to move ahead with your plans to launch a startup company. Among those is determining what kind of audience exists for the product and/or service you intend to bring to the market.

Given the sheer number of niche companies offering specialized products and services today, it can be difficult to offer something new that people also want. Heed the insights provided by your research.

There will likely be some temptation to press forward even if the research suggests that there is no audience, but don’t fall into that trap.

According to Small Business Trends, 42 percent of startup companies fail because there is no market for what they are offering.

Reason #3: Internal Issues

So, let’s say that you have made all the necessary preparations and you’ve also determined that an audience does indeed exist for your product and/or service offerings. That means you’re in the clear, right?

Well, not necessarily.

Internal issues can pop up and also lead to the downfall of your company.

The degree to which a startup is exposed to this particular problem can vary because the internal structure differs from one company to the next. If you are funding your own company, received some help from friends and family, or secured a loan from a bank, then you can probably operate independently or at least work with people you know very well.

The same cannot be said for those who acquired funding from investors, venture capital firms, or even via crowdfunding. With so many people getting involved in the day-to-day operations of the company, it’s easy for things to fall into disarray.

Disagreements are harder to smooth over when the people involved are not too familiar with each other. You won’t always be able pick and choose who you work with in business, but at least take the time to know the people who will be involved to prevent internal issues from derailing your company.

Reason #4: Timing Didn’t Work Out

Luck always plays a role in whether or not a business succeeds or fails. Even if you come up with a tremendous product offering and a sound business plan to support it, you may not get the results you want if a competitor beats you to the punch.

That’s just the way things typically go.

Some companies may also fail simply because the industry they were trying to enter was already too crowded. There’s only so many companies that consumers can pay attention to and if you get in too late, don’t expect many of them to take notice of what you’re doing without a groundbreaking new offering.

Your company failing because you were just a little too late to the party is difficult to swallow, but that’s the harsh reality that can sometimes manifest itself in business.

Reason #5: Ineffective Marketing

Given the amount of marketing tools and platforms available today, there is simply no more excuse for a startup failing to make its presence known. After all, you don’t need a big budget to run a marketing campaign online.

According to entrepreneur Neil Patel, investing in content marketing and providing high quality content is a good way to get more prospective customers to take notice of your business. You can take the time to network as well, but you shouldn’t overlook the importance of content marketing.

If you aren’t too familiar with the concept of content marketing yourself, that’s not a problem that will automatically doom your company. You can work with other companies such as Fazt Tech to figure out how to get the most out of the available platforms for marketing processes so that you can focus more on your areas of expertise.

There’s no guarantee that your startup will turn into the next international powerhouse, but sustaining a modest level of success is a remarkable achievement itself. You can do that by watching out for the pitfalls that often doom startups.