Updated: Apr 8, 2019
Nine out of ten startups fail and there are key reasons as to why they did. What if we looked at all the unsuccessful things that led these startups to failure? By looking at a list of all the wrong things, we can learn how to do all the right things. Here are some key reasons why startups Fail:
1. They forgot to talk to the consumers/target audience:
One of the biggest failures for a startup company is that there is simply no need for their product. Many startups struggle to find the purpose of their product. By simply communicating with people that might fall within their target audience, they can figure out what people need. This often helps companies find out if there is even a market for their product.
2. They didn’t have enough funds to support their startup:
This might seem like an obvious one but it is important that a startup has enough funds. It can be as simple as making an expense sheet and planning out all of the money they will need to successfully start their company. Without funding, their startup is going nowhere.
3. They put together the wrong team:
Not having the right team can really make or break a startup company. Startups need to make sure that everyone on their team is positive and has the same mindset. That mindset being the urge to move forward and being successful. It takes a team of leaders to start a company.
4. They burned out/pivoted too much:
It takes a lot of time and effort to start a company. That is why it is important for the team to stay focused on the main idea and not pivot too much. Pivoting too much can lead to a lack of interest in the company and make people believe it was never a good idea in the first place. In addition, it is always nice to have some downtime with the the startup team. Some days the team can just hang out without doing any work. This will also help the company as a whole grow closer together.
Hopefully, by looking at a list of unsuccessful things a startup can do, it can help you start a company successfully. It is important to look back at these mistakes because they are something to learn from. So take this list of unsuccessful things and apply them to your startup. This will help you fix a lot of thing in your startup that you may have not noticed. Make sure that your startup is not set up for failure.
Written by Tom Falzani. VyB Technologies, LLC. Chief Creative Officer.