It’s hard to overcome Startup Failure, especially when you have expended a lot of resources to make it successful. Startups are hard to scale, and according to data across the globe, 90% Of Startups Fail.
From lack of product-market fit to disharmony on the team, CB Insights broke down the top 20 reasons for startup failure by analyzing 101 startup failure post-mortems.
The reasons were:
Poor Product: 17%
Bad Location: 9%
Legal Challenges: 8%
Loss of Focus: 13%
Lack of Passion: 9%
Burning Out: 8%
Pivot gone bad: 10%
Failure to Pivot: 7%
No Market Need: 47%
Product Mis-Timed: 13%
Need or Lack of Business Model: 17%
Not Using Network/Advisors: 8%
Running Out of Cash: 29%
Pricing/Cost Issues: 18%
No Financing/Investor Interest: 8%
Getting Outcompeted: 19%
Poor Marketing: 14%
Ignoring Customers: 14%
Not the Right Team: 23%
Disharmony on Team/Investors: 13%
You will fail. Many times. Accept this. Failure is the greatest opportunity you will ever have, to learn something new about yourself or about your business. Failure is an integral part of starting a company. It’s a far greater crime to not try than it is to fail, More than half the Start-ups actually survive over a longer period of time and even though many of those never make it to a multi-million dollar exit, they are still successfulI’m happy that someone will be able to overcome failure because entrepreneurs are well-aware of the potential for failure. They simply don’t care about it. This is not something that bothers them in the slightest because they believe in what they have. So you can overcome it.But before I go into telling you how to overcome startup failure, i have spent time with hundreds of startups, I realized that one of the most common causes of failure in the startup world is that entrepreneurs are too optimistic about how easy it will be to acquire customers. They assume that because they will build an interesting website, product, or service, that customers will beat a path to their door. That may happen with the first few customers, but after that, it rapidly becomes an expensive task to attract and win customers, and in many cases the cost of acquiring the customer is actually higher than the lifetime value of that customer.
Here is how you can get over failure
ACCEPT THAT FAILURE IS PART OF BUSINESS PROCESS
This does not mean try to fail. It simply means that if you are faced with a setback, understand it is not your final destination. It is a stepping-stone in your journey that is getting you to where you need to be. When we do experience difficulties in life, it is okay to get down on ourselves. It is okay to get upset and disappointed.BE BRUTALLY HONEST
However, if we don’t do this, we don’t learn, and if we don’t learn then we risk failing insanely. Albert Einstein famously said it was insane to do the same thing over and over again and expect a different result. If we don’t learn from our mistakes and failures in life, then we are doomed to keep repeating them, whether we realize it or not.
We fail forward by learning from our setbacks and making the necessary adjustments until we succeed. Every change we make, every person we meet, and every bit of information we absorb is coming together so we can create a different outcome.KEEP YOUR FAMILY CLOSE
They will be your emotional anchor and keep you in good stead. Your business partners may not be there for you for life, but your family, especially parents or siblings will.
I’m sure you will agree with me that failure is an inevitable stepping stone on the way to success, the main thing here is how you can overcome it and actually accomplish your goals.
When it comes to the success of any new business, you the business owner are ultimately the “secret” to your success. For many successful business owners, failure was never an option. Armed with drive, determination, and a positive mindset, these individuals view any setback as only an opportunity to learn and grow. Most self-made millionaires possess average intelligence. What sets them apart is their openness to new knowledge and their willingness to learn whatever it takes to succeed.