Why do so many startups fail?
We’ve all heard and seen the statistics about startup success rates. Even the most visionary entrepreneur may find they’re put off by the high failure rate of startups, with only 25% making the fifteen-year mark.
There’s an active conversation around why this seems to be. The reality is, there are often a many number of reasons and factors which go into the failure of a startup, just as they would play into its success. However, when the statistics aren’t on your side, you’ll find you’re pushing against the tide to make your startup scale.
Forbes covered this very topic, with a simple answer: “So many startups fail because new and risky ideas are by design failure-prone.”
And the reality is, it’s not wrong. Entrepreneurs just need to ensure they don’t fall into the same, repetitive traps that so many startups do in their early-stages.
Many startups aren’t, in reality, going to change the world. For as many startups that have visionary founders with business acumen behind them, there are as many which have been co-founded by two friends, with no prior experience in the industry, leaping in with blind faith and falling into the unknown. Whilst many people think of the success stories of startups, the truth is, the main cause of the failure rate, is that the idea just wasn’t good enough in the first place.
I recently wrote an article on how to determine if you’re buying a product that customers will actually want to buy. It’s a solid foundation for ensuring you have the right focus and market in mind when building your product. By identifying and niching down on your market, you’ll be better set for success than those who simply assume that their product is going to change the world.
The most effective way to avoid failure as a startup, is to implement and establish processes, procedures and strategies which you can rely on to ensure focus and growth. If you fully believe in your product, you need to ensure it gets into the right hands, which means having a roadmap, and the tools to ensure you don’t lose your way.
If you’re a startup founder or entrepreneur looking to validate your ideas, gain clarity on your core audience, develop connections and implement the processes to build a successful tech product, then take a look at Kick-Off.
Kick-Off is a six-week journey for founders which has been developed by myself from over eight years of building products and launching startups around the world.