As a startup founder, you should be prepared to face all sorts of situations throughout startup development. Last year, CB Insights ranked the 20 main reasons startups fail. In this video, I’ll analyze the 5 most impactful ones and how to avoid them!
Today we share what are the most common issues startups face.
In November 2019, CB Insights ranked the 20 main reasons startups fail, listing a variety of issues faced by companies in different stages, from conception to growth and establishment.In this video I’ll analyze the 5 most impactful mistakes founders make.Welcome! I'm Amaury Khelifi, founder & CEO of MyCTOfriend.And today I'm going to talk about the 5 main reasons that lead to startups fail.By helping over 130 startup founders, I have seen similar cases to those in the CB Insights.For each of them I can ensure there is a simple step, that could have prevented the collapse of these companies.In this Top 5, the Fifth reason is:Wrong pricing & costIt's been proven many companies have problems with establishing a price for their product to cover its costs, but reasonably low to attract customers. Building an MVP can be done at a low cost following certain steps, depending on where you are.Not checking the competition.Once an idea gets validated you should expect more competition and not paying attention to which technology other companies are using is responsible for 19% of startups failure.One of the tools you can use to check on your competitors is Wappalyzer, a chrome extension that shows what kind operational system language and plugins they are using, for example.In the 3rd place:Not having the right team.Startups fail to build a team, with balance between the business and the technical part. As a founder you should look for the most skilled people to develop your product and be able to follow up their work. Different stages of the startup require different expertise, it could be a Project Manager or a even a CTO, and each of these positions will play an important role in your company growth. Running out of cash can be a huge problem, no wonder it's the 2nd place. Among the reasons it might happen is rushing into development too early. Before spending a considerable amount on that, take the time to research and make sure you have all you need, test your product and be clear on what is expected of it.And even if you were able to raise funds from investors, you still need a detailed action plan, including analytics, development process, proven scalable solutions and so on.And on the top:No market need.Which is responsible for 42% of the failures! But what is surprising is that the main reason for startups failure is in the conception stage, meaning the product developed does not interest to the market. This is a primary phase linked to the market research. Even if you already know what product to develop, you should still be opened to customers input in every stage of your product development.So let's recap:Top 5 reasons why startups failWrong pricing and costNot checking the competitionNot having the right teamRunning out of cashNot solving a market problemIf this video was helpful, leave us a comment, do like, share and subscribe!And don’t forget to click on the notification bell icon.Now, if you are serious about building a startup and want to become a better CEO & Tech manager.Find us on IG and FB & visit myctofriend.co for more startup management tips.See you in our next video!
