Education, Motivations, Startups

Why Startups Fail

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


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