Enterprisers.in

Why Startups Fail

Posted on: 16/06/2012

An entrepreneur recently asked me why startups fail. Startups fail because they run out of money. You’re probably thinking, “Tell me something I don’t already know!” Read on and you’ll see that statement is deceptive in its simplicity

This post is based both on my experience as an investor and as entrepreneur (when I’ve boot-strapped and venture-funded). The following are the key reasons :

  1. They spend too much on sales and marketing before they’re ready.
  2. The market outpaces the startup’s ability to execute.
  3. The market takes too long to develop. 
  4. Risky Business

It’s not just how fast you run the race that matters. It’s how fast the race is run. When it comes to startups, speed wins. But if you’re still early, don’t increase your burn and overspend on sales and marketing before you’re ready. Sometimes you have to slow down to speed up.

Click Here for some great learning experience from David Feinleib

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

Categories

Enter your email address to follow this blog and receive notifications of new posts by email.

Join 656 other followers

Blog Stats

  • 73,608 hits
%d bloggers like this: