The Flags are Fatal

Any wildly successful entrepreneur can make fatal mistakes, as shown by Pierre-Olivier Latour. Even teams with ample amounts of talent and experience can fail if they aren’t conscious of the reg flags and warning signs, like the Everpix team. The team created a clean and robust product that worked and had a paying customer-base. Unfortunately, they lacked focus and ignored many warnings that they were shown.

Warning #1: Founders who think they know the answers to everything…

A major problem and warning flag in startups is a founder who believes that they know all, and won’t listen to feedback or suggestions from investors as well as customers. In Out of the picture: why the world’s best photo startup is going out of business it says: “ While the team obsessed about perfecting the service, the founders paid less attention to the subject investors care about most: growth”. The founders thought that their focus was better and didn’t listen to what the investors wanted, which eventually had a major contribution to the crippling of the startup.

Warning #2: Legal and Property Expenses…

In total Everpix spent $694,726.52 on office expenses and legal fees alone. This is more than 30% of their total $2.3MM raised. Absolutely ridiculous. A large problem with starting a company in silicon valley is the price of property and cost of living, which is considerably higher than many other places in the United States. The founder spent over thirty percent of their investors capital on amenities that provide no return.

Warning #3: People involved weren’t inspired to share and advertise product…

As stated in Out of the picture: why the world’s best photo startup is going out of business; “ Everpix built some features for sharing photos, but there was little else in the product to help it spread to other people” (Newton). The team had no focus on marketing to a greater customer base or creating opportunities to inspire their “Loyal” customers to share the product they used and loved with everyone that they knew. There was no act to provoke the spread of the product.

Had Everpix heeded these warning signs they could very well still be afloat today. Regardless, it’s evident that the founders will take a great deal of experience from this failed startup and use it as they work again to try and build another startup.

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