Startup DiagnosticsReasons why startups can fail

ConstruktFestival2015

Reason 1

The first is a Lack of Market Need; nearly 42% of startups are killed by this arrow. Knowing that my product is cool and innovative is just not enough, our main driver should be market need. Our product should be able to solve a specific problem in a scalable way.

You see, our target audience has something called a “change inertia” –You need to give a them an extremely good reason, otherwise it just won’t work.

Reason 2

The second factor is bad or sub-standard product – Most beta or early stage products with bugs are enough to turn off your customers, especially when you are surrounded with other fishes in the sea, and especially the sharks.

Reason 3

Understanding the competition is as important. There are other startups doing similar stuff as mine, and not to forget the big corporations with limitless resources, waiting to beat you to the market. Take Android for example, the software driving half the world phones – It is a good example of Google digesting a startup . However, it does not mean that you have to be the “first to market”, rather, you have to be a “fast follower”. Apple, Google, Microsoft, Fb, ford –none of them were the first, but they adapted with intensity.

Reason 4

One thing most of us underestimate is the Great Team. Sure, we have amazing friends, colleagues or family to start up a venture with. What we also need are Experienced Leaders, who have had a hands-on with the actual market scenarios. Starting up is like finding your way out of a rainforest, and having a great guide does pay off in the long run.

Reason 5

And finally, as we all have faced before – the evil called “Money”. Almost 29% startups, even though they were funded failed since they underestimated how expensive life would be. You need to make sure you plan early enough for lawyers, test productions, employees, real estate among other capital hungry areas.

QuotePeople don’t buy what you do, they buy why you do it!!

- Simon Sinek

Quote

"I don't celebrate failure for failure's sake, but I think there is something amazing about trying to do something at the edge of possibility and potentially failing at it."

Gary Swart, venture partner at Polaris

In Conclusion

Your startup is an extension of yourself.

Yes, sometimes, startups fail, but it is you as a founder who needs to keep going and not fail.

That’s how its not done.

Adios Amigos Thank You.