Thursday, November 2, 2017

Why StartUps Fail

CB Insights had a post back in September based on an analysis of 101 start ups that failed. It is interesting to note that the number one reason given was "We created a solution that didn't have a problem". In other words, the founders became convinced that they knew who the market was, and that they knew what the problem was, and they sought (unsuccessfully) to push that product down the throat of the market. Markets won't respond positively to that. As a result, the company fails. This is why the Lean Startup exists; the primary focus of our model of mentoring entrepreneurs is to help them find product-market fit. Barring that, our job is to concede that the right thing is to walk away from any attempt to commercialize the particular technology. Sometimes this is about the timing, or the team that is trying to make the fit happen, but it is often a result of solving a problem that simply does not exist for enough people to be an effective market. I'll talk about the other items in the near can join the conversation in the comments!

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Not The Right Team - Reason #3 for StartUp Failure

I posted previously  about the reasons that startups fail (#1 - No Market Need), and followed that up with a post  about the second reason (...