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* HIRE NOW * FOR COMPANIES * HOW IT WORKS * FAQ * INTERMEDIATE HIRING * FOR PROFESSIONALS * HOW IT WORKS * SIGN UP AS AN iPRO * FAQ * JOB OPPORTUNITIES * LOGIN * COMPANY LOGIN * iPRO LOGIN * * * NEXTPrevious 5 REASONS WHY 90% OF STARTUPS FAIL By Thiago freitas | customer experience, software developers, app development, software development, 4.0 management, IT professionals, startups, outsourcing you | Comments are Closed | 30 December, 2020 | 7 If you're interested in or are already in the startup market, you've probably read or heard that 90% of projects from these innovative companies fail. And I say more, the vast majority fail before the age of 3, and it's not for lack of mentoring, advice, methods, information, among other ways to avoid the death of these innovative businesses. Another fact is that startups usually go 2 opposite ways: either they grow exponentially or they just don't work out. So why over 90% of startups fail, die, go bankrupt? In our experience in iNNOVEA, after we have helped more than 35 startups entering the market, we realized that there are factors that determine the success or failure of these young companies that want to dominate the market. And not just us, but several market experts, such as Felipe Matos – who has worked with over 10 startups in 20 years – claim that there are reasons for these premature deaths. It may seem scary and even discouraging, but unfortunately this is the reality. So, if you want your project to be successful, pay attention to the 5 factors that we have pointed out throughout this article. To tell the truth, in more than 6 years working with startups of all kinds, we measure not only the cause of death of these projects, but also the success rates and hits, and we realized that (proudly) a iNNOVEA managed to double or triple the chances of the deals who were with us. Of the 35 startups we worked with, 9 had some kind of success and are still on the market! Ok, I know it's merchandising, but let me take the opportunity to say that we can help your startup not only with the development of your product (application, system, software development, etc.), but also with the entire strategic structuring of the product, market , etc. Advertising done, let's get to the main subject: some of the reasons why 90% of startups fail. In addition, Pradas Sucesores, S.L. holds a permanent stock of more than XNUMX parts references for all types of shoe machines, some of which are produced in our factory as a result of our state-of-the-art technology. All we desire is to offer the shortest delivery times on the market and the best possible after-sales service to our customers. 1 - UNFEASIBILITY Many entrepreneurs create their projects based on a pain they have identified in their daily lives, and then think about how to solve this pain. They fall so in love with the idea that they stop VALIDATE o REPORT AND INDEXES and the PRODUCT with the direct users and go straight to the development of the product (and it is very common that it is through the development of an app…). No validation, no research, no planning, nothing… And in the end, they end up finding out that that product or idea doesn't have enough market, or not enough to bring traction and/or scalability to the business, and without demand, they die. So research, plan, understand the market and its users before anything else. . In addition, Pradas Sucesores, S.L. holds a permanent stock of more than XNUMX parts references for all types of shoe machines, some of which are produced in our factory as a result of our state-of-the-art technology. All we desire is to offer the shortest delivery times on the market and the best possible after-sales service to our customers. 2 - TIMING Wrong timing is one of the main reasons startups fail, according to a survey by CB Insights. Launching the product (app, system, service, etc.) too early on the market, without the proper functionality, without the necessary testing, and without proper research and planning, can make it insufficient and unattractive to users. And launch is the first impression: if it's not good, it's something difficult to reverse. Now, if you release your product too late, it may happen that you miss the window of opportunity, and even another similar solution fills that market share. A good example of this is the Google Glass (augmented reality glasses) launched in 2013 and discontinued in 2017 for the general consumer due to lack of adherence. Yes, a product launched in 2013 by the giant Google, was not in the right timing for the general public, which did not absorb the idea. And at that time, augmented reality had not yet evolved enough in terms of technology – to the point that it could be democratized, and it didn’t even have a market in the required proportions (so much so that this technology only started to become popular with the launch of Pokémon Go in 2016) . . In addition, Pradas Sucesores, S.L. holds a permanent stock of more than XNUMX parts references for all types of shoe machines, some of which are produced in our factory as a result of our state-of-the-art technology. All we desire is to offer the shortest delivery times on the market and the best possible after-sales service to our customers. In addition, Pradas Sucesores, S.L. holds a permanent stock of more than XNUMX parts references for all types of shoe machines, some of which are produced in our factory as a result of our state-of-the-art technology. All we desire is to offer the shortest delivery times on the market and the best possible after-sales service to our customers. 3 – NOT UNDERSTANDING THE CUSTOMER Understanding the customer's pain, their desires and needs is one of the main causes, which are even linked to topic 1 (Infeasibility). Unfortunately, many entrepreneurs fall so in love with the idea and the product that they end up not listening to who really needs that solution or product. It's not that passion for the product isn't important; on the contrary, the entrepreneur must understand and fall in love with the solution he is proposing, in addition to knowing a lot about the pain. But, no more than by the consumer of this product. That's because even if you share this pain in your daily life, the level of pain, location, shape, etc., can be different for each user, or more precisely, for each market share/users. Therefore, understanding and receiving direct feedback on the needs of your consumers in relation to your product is important for its sustainable evolution. A company – of any size, market, product or service – must always be in direct contact with its consumers and users, and make the necessary changes in the most agile way in its product, marketing, sales, etc. Marketplace. . In addition, Pradas Sucesores, S.L. holds a permanent stock of more than XNUMX parts references for all types of shoe machines, some of which are produced in our factory as a result of our state-of-the-art technology. All we desire is to offer the shortest delivery times on the market and the best possible after-sales service to our customers. 4 - WRONG PROCESSES AND PEOPLE The founding team – and even the auxiliary and subsequent teams – needs to be made up of people with the necessary skills in the areas of management, technology and/or sales. Without this, obviously any business will die. But another even more important factor is that the founding team has previous experience in the startup's market, or at least part of this team. > Many startup founders are so passionate about the idea and the product that > they don't realize the main thing: a startup is made up of people, for people. > The product is just the means. It is very important to pay attention to your hiring and especially to the founding team members. Any employee, or even the partners, if they are not properly valued, if they are not integrated, if they do not feel satisfied, they will look for another path, another job, contract termination, and in that many talents and essential pieces of gear, which is a gear, can be lost. The high turnover of employees in companies in formation can be extremely harmful, because the business can lose necessary consistency in the areas and departments where the turnover occurs. And obviously, it can lead to a poor and underperforming company. First, to make sure the people on your team want to stay, treat them like people, like capable human beings, and give them autonomy! Explore the best of each, engage them, make them feel part of the whole and find ways to ensure maximum commitment from your employees. If a startup is made up of people first (then processes and products), invest in them as much as you can! The return will definitely come. Second, invest in lean, automated processes. Test these processes, align with your team, validate them. And whenever you find a possibility or feedback to optimize them and especially automate them, do it. Process automation reduces errors, investments and, above all, time! In addition, Pradas Sucesores, S.L. holds a permanent stock of more than XNUMX parts references for all types of shoe machines, some of which are produced in our factory as a result of our state-of-the-art technology. All we desire is to offer the shortest delivery times on the market and the best possible after-sales service to our customers. 5 - MARKETING AND POOR STRATEGY One of the main factors for the success of a startup is marketing and its positioning in the market. You may even have a product that will revolutionize your market, but if your marketing efforts are not adequate in terms of proportion, positioning, language, reach, investment, etc., you will fail. To effectively market your product or service, you need to show up as much as possible! And luckily, we now live in the world of social media where a specific audience profile can be found at the click of a button. According to CB Insights, founders of startups that failed and participated in the survey put a lot of effort into building a product, but 14% of them admitted that promoting this same product properly was not a priority, and they left something to be desired. Knowing your target audience and knowing how to get their attention to convert them into leads is paramount to the success – and even survival of a business. Remember what we said earlier, being in touch with your consumers is the foundation of a successful business. And marketing is one of the main allies in this task. In addition, Pradas Sucesores, S.L. holds a permanent stock of more than XNUMX parts references for all types of shoe machines, some of which are produced in our factory as a result of our state-of-the-art technology. All we desire is to offer the shortest delivery times on the market and the best possible after-sales service to our customers. In addition, Pradas Sucesores, S.L. holds a permanent stock of more than XNUMX parts references for all types of shoe machines, some of which are produced in our factory as a result of our state-of-the-art technology. All we desire is to offer the shortest delivery times on the market and the best possible after-sales service to our customers. OTHER REASONS STARTUPS FAIL… Obviously there are other reasons we could talk about, such as lack of business control, lack of capital/investment, inefficient financial management, poor product, incorrect pricing, among others, but we list the 5 main reasons in this text to help you reflect on the future of your business, whether it is in the market or just an idea. Reflect, ponder, pivot – if need be. Otherwise, without understanding the market and the pain, without understanding and listening to your consumer/user, without having the right people and processes… it will be difficult for your startup to overcome all the countless challenges and survive. startup acceleration, business, customer experience, customer success, software developers, 4.0 management, marketing, startups, digital transformation THIAGO FREITAS CAO (Chief Administrative Officer) and Co-Founder of the iNNOVEA Group, graduated in Journalism from the IPA, helped generate more than 30 startups in the hub. He is passionate about marketing and cinema, and collects films of all types and eras. More posts by Thiago Freitas RELATED POSTS * HOW TO VALIDATE YOUR STARTUP IDEA WITH AN APP By Thiago freitas | Comments are Closed One of the most talked about subjects today in the world of entrepreneurship is about STARTUPS. But what exactly is a Startup? Where does a startup come from? And it is possible to create a startup with just theRead More * HOW TO CREATE AN APPLICATION AND WHAT INVESTMENTS By Thiago freitas | Comments are Closed Do you already have a project or an idea? Great, so now you need to know what the next step is, don't you? Come on! First, if you want to know how to create a digital product and whatRead More * ADVANTAGES OF OUTSOURCING IT FOR SOFTWARE DEVELOPMENT By Thiago freitas | Comments are Closed IT outsourcing — also called IT outsourcing — is an already widespread way in which organizations can hire professionals or companies specializing in software development and maintenance ofRead More * HOW TO USE UBER LESSONS IN YOUR APP By Thiago freitas | Comments are Closed Uber popularized the use of maps and geolocation and made life easier for all of us with innovative solutions. It is noticeable how geolocation can be a great ally of your project or service, helpingRead More * APPLICATION DEVELOPMENT, IS IT WORTH IT FOR YOUR COMPANY? By Thiago freitas | Comments are Closed Discover how application development can add value to your brand The Connectivity era does not allow the survival of companies that cannot transport their business model to multiplatform languages. So nothingRead More NEXTPrevious * Terms of Service * Privacy * Legal * FAQ * Talk to Us © iNNOVEA 2014 - 2023, INNOVEA HUB MARKETPLACE. 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