Why do startups fail?
Posted: Wed Dec 04, 2024 5:46 am
There are many reasons why startups fail. But I tried to collect them for you in one list in order to protect you from such a fail. So, let's go:
1 Haste makes waste
Imagine the following picture: a young, enthusiastic future entrepreneur finds/comes up with a great startup idea. Borrows money from all his relatives and implements it! But for some reason, after the chinese malaysia cell phone number data implementation, absolutely nothing happens: people do not buy/use the product, there is no profit, only debts. The startup failed. And why? Because our young startupper forgot about the most important point of business development - creating a business plan. You should not rush to create the product itself, first determine your target audience, calculate whether your target audience can afford to buy your product. And best of all - hire a business analyst who will do the same with much greater professionalism.
Why do startups fail? - image
2 Everything has its time
I just said that it is better not to rush, but you should not procrastinate either. Failed startups are most often those that open at the wrong time. Let's remember, for example, the online entertainment portal Z.com, whichtoldBill Gross. The startup idea is great, but the timing is not right: the Internet is too slow, videos load only after installing a dozen codecs. After all, literally a few years later, Adobe makes a revolution and the speed of video loading increases significantly. An analogue of Z.com, which opened at the "right" time - YouTube. I think its popularity is not even worth talking about.
3 The morning is wiser than the evening – not about startups!
One of the obvious reasons why a startup "burns money". If you already have an MVP (minimum viable product) or prototype - throw it out to the users. Why wait? The longer you hide your product, the fewer people will know about it. Besides, how else will you understand that your startup is really worth something if you don't let people use the prototype? It may happen that the product is not relevant, or maybe its time has come.
4 One for all and all for one
Remember that nice young man from point 1? Well, one of his "oversights" was precisely the lack of value of teamwork. Investors look at solo startups with great distrust, because such a huge amount of work is simply not possible for one person to do.Team for a startupshould be professional: you shouldn't start a business with people who are just your friends. It's better to work with acquaintances who know their business well.
The inspirer of a startup should also understand a number of nuances: if you are creating a startup in a certain field (for example, IT or trade), then you should understand this topic yourself. After all, then such problems will arise as an unsuccessfully set technical task (and what kind of a task can it be if the manager has a vague understanding of what a technical task is in general), an incorrect assessment of the project budget (and the budget is estimated based on the technical task), and the like.
Why Startups Fail - 2 - image
5 Money loves smart people
Without a budget, you won't get very far in a startup. You won't even be able to row away from the shore. Unfortunately, there are almost no enthusiasts who will work for free, just for a share of future sales. The entire team needs a salary, but where to get it?
There are startups with minimal investment, most often from FFF (family, friends, fools), which at first survive due to the enthusiasm and enormous work of the creator. As an example, we can cite the startup "Dashiny Pirozhki", but any other home confectionery will do here.
If the option of "minimum startup funding" does not appeal, you can move on to another point - business angels. The most striking example of successful cooperation between a business angel and a startup is Peter Thiel and Facebook.
You can also turn to venture funds, but the guys there are more serious and won’t just invest in a startup.
In conclusion, I would like to say that, of course,startup development– the process is labor-intensive and nerve-wracking, but if there is a good goal, then obstacles should be of no use
Good luck in your endeavors!
Look for cool and useful information here too:https://artjoker.ua/ru/blog/zhiznennyy- ... o-to-hero/
1 Haste makes waste
Imagine the following picture: a young, enthusiastic future entrepreneur finds/comes up with a great startup idea. Borrows money from all his relatives and implements it! But for some reason, after the chinese malaysia cell phone number data implementation, absolutely nothing happens: people do not buy/use the product, there is no profit, only debts. The startup failed. And why? Because our young startupper forgot about the most important point of business development - creating a business plan. You should not rush to create the product itself, first determine your target audience, calculate whether your target audience can afford to buy your product. And best of all - hire a business analyst who will do the same with much greater professionalism.
Why do startups fail? - image
2 Everything has its time
I just said that it is better not to rush, but you should not procrastinate either. Failed startups are most often those that open at the wrong time. Let's remember, for example, the online entertainment portal Z.com, whichtoldBill Gross. The startup idea is great, but the timing is not right: the Internet is too slow, videos load only after installing a dozen codecs. After all, literally a few years later, Adobe makes a revolution and the speed of video loading increases significantly. An analogue of Z.com, which opened at the "right" time - YouTube. I think its popularity is not even worth talking about.
3 The morning is wiser than the evening – not about startups!
One of the obvious reasons why a startup "burns money". If you already have an MVP (minimum viable product) or prototype - throw it out to the users. Why wait? The longer you hide your product, the fewer people will know about it. Besides, how else will you understand that your startup is really worth something if you don't let people use the prototype? It may happen that the product is not relevant, or maybe its time has come.
4 One for all and all for one
Remember that nice young man from point 1? Well, one of his "oversights" was precisely the lack of value of teamwork. Investors look at solo startups with great distrust, because such a huge amount of work is simply not possible for one person to do.Team for a startupshould be professional: you shouldn't start a business with people who are just your friends. It's better to work with acquaintances who know their business well.
The inspirer of a startup should also understand a number of nuances: if you are creating a startup in a certain field (for example, IT or trade), then you should understand this topic yourself. After all, then such problems will arise as an unsuccessfully set technical task (and what kind of a task can it be if the manager has a vague understanding of what a technical task is in general), an incorrect assessment of the project budget (and the budget is estimated based on the technical task), and the like.
Why Startups Fail - 2 - image
5 Money loves smart people
Without a budget, you won't get very far in a startup. You won't even be able to row away from the shore. Unfortunately, there are almost no enthusiasts who will work for free, just for a share of future sales. The entire team needs a salary, but where to get it?
There are startups with minimal investment, most often from FFF (family, friends, fools), which at first survive due to the enthusiasm and enormous work of the creator. As an example, we can cite the startup "Dashiny Pirozhki", but any other home confectionery will do here.
If the option of "minimum startup funding" does not appeal, you can move on to another point - business angels. The most striking example of successful cooperation between a business angel and a startup is Peter Thiel and Facebook.
You can also turn to venture funds, but the guys there are more serious and won’t just invest in a startup.
In conclusion, I would like to say that, of course,startup development– the process is labor-intensive and nerve-wracking, but if there is a good goal, then obstacles should be of no use
Good luck in your endeavors!
Look for cool and useful information here too:https://artjoker.ua/ru/blog/zhiznennyy- ... o-to-hero/