As our company works a lot with startups, we can’t hide the fact that startups fail. Most of them are not ready for today’s market or they don’t understand how to satisfy customers.
Not understanding what customers need
One of the most painful reasons why startups fail is not understanding what customers need. Our partners worked with a client, who has a perfect idea about creating a platform for writing/proofreading books. Partner’s team helped this client to do a default marketing research and to get feedbacks from potential customers. The dispute started. The client was not ready to make changes to original version of this app as customers asked, because nobody wants to crush own dream vision. And that was a mistake. After 5 months of being in production and having no traffic, the client finally decided to change an architecture of current app. The result was 40+ new customers in 3 weeks.
Not choosing the right team
You may raise a lot of money being a startup. You can find highly-skilled professionals in marketing, design, development and other departments. But you would never get a team that is passionate about your product. You will need to spend a huge number of hours finding the right personalities for different positions. And after 8-10 months some of the employees will leave because they are bored with routine or they didn’t get enough motivation. Try to concentrate on searching for a team of 2, 5 or maybe more workers. These small teams of friends will give your business much more value than you think. Look for employees who love what they do.
User un-friendly product
Choosing wrong technology stack for developing the product. Terrible user experience when using the product. Design concept is not associated with the company’s activity. Critical bugs that are not allowing customers to get what they need. These are the main reasons why your product can be user un-friendly. What you need to do? Analyze and test everything 10x times before you launch the product. “Measure it 7 times, cut it 1 time.” – the main principle of every product that you want to make successful.