Top 20 Reasons For Startup Failure

  1. Building “a solution looking for a problem”.
  2. Ran out of cash
  3. Not the right team
  4. Get outcompeted
  5. Pricing/Cost Issues
  6. A “User Un-Friendly” Product
  7. I got this product. Now I just need a business model
  8. Poor Marketing
  9. Being inflexible and not actively seeking for using customer feedback
  10. Release product at the wrong time
  11. Lose Focus
  12. Disharmony with Investors/Co-founders
  13. Pivot Gone Bad
  14. Lack Passion and Domain Expertise
  15. Location, Location, Location
  16. No Financing or Interested Investors
  17. Legal Challenges
  18. Do not use your connections or network
  19. Burn Out
  20. Failure to pivot when necessary

Business failures are costly

They can result in lost capital, wasted time, and damaged confidence..

CB Insights

Don´t Fly Blind

Strategies to pre-validate demand

  1. Look for successful competitors

    When it comes to establishing demand, thriving competitors are a good sign, not the red flag many entrepreneurs view them to be. Being the first mover in an area can produce situational advantages, but showing up late gives you the benefit of added perspective

  2. Check for search traffic

    When people are searching for a product to solve a problem they’re facing, they type what they’re looking for into Google. Through keyword research, entrepreneurs can learn what people are searching for and use the findings to gauge demand for a product or service idea. Confirming that people are searching for a product or service like yours is a good sign, and through Google AdWords campaigns or SEO, you can work to get in front of these very people if you decide to launch the idea.

  3. Test your marketing promise

    Customers don’t truly know what it’s like to own a product until after they’ve purchased it. They don’t spend money because of any realized benefits. They’re paying for the benefits promised in the sales copy and testimonials. This is a crucial insight for anyone looking to test a new product or service because it suggests that you don’t need a finished product to validate demand for an idea. You can create the marketing copy for your hypothetical offering and test it through surveys or interviews with targeted prospects.