Top 7 Reasons Startups Fail

Top 7 Reasons Startups Fail 

Having a good idea always enough to be successful. When it comes down to it, most startups fail.

I’ve personally been behind the building and marketing of over 2,000 websites, and I’ve founded my own company, Ciplex. These experiences have allowed me get a definitive picture of why many startups succeed and others fail. I’ve highlighted seven reasons below:

1. Surrender. Great entrepreneurs never quit. A sense of resilience may be the most important aspect of building a company. You may get a lot of “no’s” at first, but push through the negativity--it can mean the difference between succeeding and failing.

2. Ideas have no value. Just because you think you have a good idea, that doesn’t mean someone else hasn’t already thought of it--in fact, they probably have. Ideas don’t create good companies--it’s the people behind the ideas that matter, and how committed they are to making their vision a reality.

3. Too many features. Focus on creating the minimum viable product, or MVP. Creating the MVP means developing a product that’s easy to understand from the beginning. Many founders think developing multiple features for their product will make them stand out. In reality, a feature-rich product takes a lot of time and money to build. Keep it simple and focus on speed and ease of use. There’s no need to overdo it.

4. No marketing plan. So many startups focus too much on the product and the launch. They neglect to develop a strategy for acquiring users and marketing the product. Startup founders need to develop this type of strategy immediately if they want people to not only use their product, but also share it with others.

5. No support layer. Resilience is important to getting a business started, but don’t ignore advice of experienced entrepreneurs, either. Throw out criticism you don’t find constructive, sure--but don’t neglect advice from those who have come before you. Be open-minded about feedback.

6. Too broad. Keep your target audience small if you want to see your idea last. Good startups locate a niche and a small target audience. This makes marketing not only easier, but cheaper. For example, if I’ve created a product for writers, I should narrow down my target audience and market only to users in one area—say, Orlando, FL—to make it easier to focus my marketing efforts.

7. Bad partners. Don’t bring in the wrong partners. If you want your startup to be successful, you need partners who are on the same page as you but differ in important areas. They should offset the actual build of the business–after all, two guys with ideas aren’t going to get as much done as an “idea guy” and a developer.

Being ambitious and driven isn’t enough for a successful startup. Follow up a good ideas with with a great team, an MVP, and a developed marketing plan. Keep these mistakes in mind to give your ideas a fighting chance.

(Photo: Jez Page, flickr)