I did not have a start-up company of my own, but I worked in various start-up companies and one of them being a failed start-up. The company was surely a failed start-up because it was 10 years, and no significant progress was made. A start-up usually gets established in 3 years. The company CEO used to make money by giving the employees less salary, at times not even giving a salary for more than a year, thus exploiting his employees to the limit. I was the HR and tried to warn the manager of the dire consequences that laid ahead, but there was no serious response from her. She was simply happy to put the blame on either CEO or CTO shoulders. So, in my opinion the worst way to make quick money is to stop the paycheck of the employees who toil hard day and night, and just elope with all that money somewhere else. But if you are eager to successful, try to see through your failure. Let us review the top three reasons for start-up failure.
1. No market need: The number one reason why start-ups fail is because there was not a market need. This should have been discovered during the early stages of the business. It is your responsibility to conduct the proper market research. One of the first steps of launching a new business is to identify the target market of your start-up. If you skipped this step or took some shortcuts through the process, it could be the reason why you failed. Learning there was no market need for your start-up could have saved you a ton of time, money, and effort if you figured this out in the early weeks or months.
2. Running out of cash: Running out of money could happen for a few reasons. Perhaps you either did not raise enough money or did not budget accordingly. Again, both of those scenarios would fall on your shoulders. Do not get me wrong here, I am not saying this so you can beat yourself up about it. I just want you to figure out exactly what the problem was. Being in denial will not help you move forward and turn your failure into a success story.
3. Not the right team: Surround yourself with people who can help you succeed. As you can see from the graph above, 23% of start-ups failed because the team was not right. Rather than blaming your team members for the demise of the company, make sure you find the proper people moving forward. After all, who hired those team members? Do not bring someone on board if they do not bring anything to the table. Research shows that founders with larger teams can pay themselves higher salaries. But does not mean you should be hiring a ton of people right away. Make sure you work with people who are compatible with your management style, hardworking, and skilled in areas where you are weak. For example, let us say you are an excellent marketer. Working with a partner who is also a great marketer may not be what you need if neither of you knows how to develop products or handle finances.
Besides if you do have any questions give me a call: https://clarity.fm/joy-brotonath