Startup Failure

Reasons startups fail while scaling:

  • Failing a way to test presumptions that were made, and fix them.
  • Failing to find issues in provided solution.
  • Trying to solve too many problems.

Reasons startups fail:

  • They create something people don’t need.
  • Overestimating market size, needs, and budget they can assign to have your solution
  • Going after small markets to avoid Competition. you will only avoid competition if your idea is bad.
  • Single leadership. it’s best to have co-founders and teams to help build an startup.
  • Social Circle: it’s important to be around right people. both for receiving right feedback and ideas, and for motivation.
  • obstinacy: stubbornness and lack of flexibility is not a suitable trait for an startup.
  • Bad development team. The development team must be able to produce a near perfect and scalable final product, while being able to manage their perfections while developing MVP.
  • Wrong platform. choosing wrong platform ruins the foundation of your product.
  • Launching too late, or too soon. the best solution is that you should launch as soon as you have a product which won’t damage your reputation.
  • Bad market analysis. you must know your user base, and if they are willing to pay for the solution you provide.
  • Lack of capital, specially when product is launched will make you vulnerable and takes away your choices and flexibility.
  • Bad expense management. don’t pay for luxuries. and don’t hire if they aren’t essential(developers, marketers).
  • Making profit instead of users. Startups make users, businesses make profit. mind the growth phase and don’t ruin it for short term gain.
  • Founders becoming bosses instead of part of the team.
  • Conflicts between team members, specially founders can be devastating for startups.