Before we get into the reasons why startups fail, i would like to sincerely Thank You for your support and wish you a Happy and Healthy 2019…! So, you’re probably wondering, why am i starting the year off with a post about failure?! Well, I want to ensure that 2019 is a successful year and in order to stay on the right tracks i think you (both as an individual and company – big and small) need to know both what you should and should not be doing.
What’s interesting about the no nonsense CB Insights research is the “post-mortem” commentary from start-ups who have been there and unfortunately done it. Add to that the expected and continued growth of “disruptive” startups, in particular fintech startups – fintech unicorns (startups with valuations over $1 billion) lead startup funding rounds and valuations in 2018 – that are striving to offer innovative products through digital channels providing a smoother and simpler customer experience.
Rocking Reasons why Startups Fail:
- Inability to understand market and customer demands
- Inability to control spend and eventually running out of cash
- Inability to form and maintain a diverse team
- Inability to understand and remain competitive
- Inability to understand pricing and costs
- Inability to listen to your customer and create a customer unfriendly product
- Inability to agree a business model
- Inability to market and promote the product
- Inability to talk with and understand your customer
- Inability to time product release
- Inability to stay focused
- Inability to agree within the team and/or your investors
- Inability to pivot/course correct correctly or at the right time
- Inability to have and/or keep the passion
- Inability to expand geographically
- Inability to gain investor interest / financing
- Inability to understand and comply with legal requirements
- Inability to make use of your network
- Inability to maintain a work-life balance leading to burnout
- Inability to course-correct
