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Why Start-ups Fail馃搩



A breakdown on the reasons for a company breakdown following initial growth and traction.
Good Idea, Bad Bedfellows
: The idea and market are there were strong product market fit, yet the invisible, background errors compound. This includes lack of experience in a given industry, partnerships that cannot provide adequate value, unforeseen obstacles in production and distribution. These are not so obvious in the moment, but can be costly when wrongly executed
False Starts
: There is a balance between releasing a product early for testing and validation the problem space through user research. Releasing too early can create constant pivots and a lack or core market understanding. Iteration can only be successful on an addressable, understood market and customer base. How to avoid?
Problem definition: Rigorous interviews with potential customers to determine
Solution development: After adequate problem research, build a solution around that. Not the other way around
Solution validation: Validate solution with MVP tests
There are few key traits that a founder must possess to achieve success
Persistence. Things can and will go wrong. Most startups fail because the founder/team gives up
Just do it. Learn by doing.
Passion: An enabler for persistence
Bootstrap. Founders must be scrappy and efficient
Grow: Look for avenues for growth
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