A startup business is like holding a new science experiment.
There are just too many uncertainties and you're not sure what to do to drive the results you're looking for.
If you're looking to go from 'Zero To One' as Peter Thiel explains starting a brand new company no one has done before, then you're further in the dark than everyone else.
You will most likely be a solo founder or a group of no more than 3 people.
You're going to have to live with a no/low salary at the start and wear multiple hats simultaneously.
There will be many 'failed' experiments and iterations necessary to finally start seeing a bit of movement forward.
Although I've spoken previously about what a successful business asks from its founder(s), it is still usually much harder than just that.
At many stages of your business, you're going to want to lose faith because it gets challenging.
In fact, many businesses do, adding to the 90% failure statistic.
Yesterday, I wrote an article about creating a vision board that actually works - this should help with maintaining faith in the face of doubt.
But 'why do so many startups fail?' is what we want to uncover.
There can be tens, even hundreds of reasons for the failure of a startup.
Today, we're going to dive into the 5 main reasons why most startups end up failing and tell you exactly how to avoid being part of the statistic.
Running out of money
There's a quote by Ash Maurya that says, "Startups run out of time, before they run out of money."
Cash should never be the forefront driver of a startup.
With low cash, business owners need to get creative.
One startup team, Slidebean, managed to start a consulting business to fund their project, later getting into different business accelerators.
Cash is important, but not as important as all these other reasons.
Not innovative enough
After all, if you're no better than the competition, why would someone switch?
Build something no one wants
Giving up too early
- Run out of money
- lack innovation
- build a product no one wants
- have a bad team
So how do you ensure that you don't fall into this statistic?
Till next time,