💀 Why do Companies Die? 💀
Founders, please read this to avoid the common death traps.
Here are some crazy scary statistics:
→ 9 out of 10 startups fail
→ 7.5 out of 10 venture-backed startups fail
→ Only 1% of startups become a unicorn
These statistics come from various sources including CB Insights and Failory.
There are three top reasons why startups fail:
1️⃣ Poor product-market fit
2️⃣ Wrong marketing strategies
3️⃣ Team/ HR issues
In the sheet below, I’ve summarized various insights on why startups fail.
Luckily, there are plenty of ways you can maximize the chances of success:
> In the early stage, it is critical to validate your idea
> Do not hire too senior level personnel too soon
> Build your target revenues when you have some initial revenue data
> Take the pitch seriously by working with experts to elevate your story
What other ways do early-stage founders get it wrong or right? 💬
Sources: Kyril Kotashev via Failory, Josh Howarth via Exploding Topics & Tom Huddleston Jr. via CNBC
