The document discusses 7 common reasons why most startups fail. These include: 1) Not understanding the user, 2) Being too in love with the technology, 3) Launching too slowly, 4) Having no real sales strategy, 5) Having a market that is too small, 6) Being a basic copycat of another successful concept, and 7) Burning through cash too quickly before generating revenue. The key lessons are to focus on the user, test before building many features, get to market fast, develop a sales strategy, ensure the market is large enough, differentiate your concept, and control costs until revenue is generated.

2. It’s easy to
think of the
latest startup
like a
pimple in the
middle of your
forehead:

3. you wake up one morning and it’s
all you can see.

4. And then, one day, for no specific
reason . . .
it’s gone

5. Really

6. “Anyone know what
happened to
Whatchamacallit?”

7. After some
enquiry, all
you’ve got is
a
handful
of
rumours
and a bucket
of spin.

8. All we
know for
sure is
that it’s
over.

9. Truth is, most of the time, it
failed because of the same
reasons so many other
startups fail.

10. There will
always be
special
individuals who
find exceptional
ways to kill
their business

11. majority of startups fail in
far more mundane ways

12. #1. Not
understanding
the user

13. Your plans are
based on what
you think
the user wants

14. maybe you even have a
few buddies who thought
it was cool

16. and how they
like doing things

17. Be careful about telling them
how they should act

18. Be careful about telling them
how they should act
this usually backfires.

19. #2.
Too in
love
with
the
tech

20. You love adding features

21. “Wouldn’t it be awesome if
we could also let them Skype
with the dead?”

22. You’re building an elephant

23. You’re building an elephant
but haven’t tested any of it

24. Maybe users
only need the trunk.

25. Keep it to
the core
and market
-test
before you
go wild on
features

26. Getting this
wrong has
massive knock-
on effects.

27. #3.
Launching
too
slowly

28. If you’re
building that
elephant,
you’ll keep
holding back
on the launch
until
everything is
perfect.

29. Always
Remember

30. It will
never be
fully
ready or
tested

31. and

32. your competition will hit
the market with a good
basic solution.

33. Hence

34. keep it lean

35. get to market fast

36. and

37. add functions
as user
demand
warrants it

38. #4. No
real sales
strategy

39. Capturing 20 percent of the
market is not a strategy

40. Who
will
be
your
first
customers?

41. How do you
reach them?

42. What
does it
require
to close
the
deal?

43. How many
sales people
do you need
to do this?

44. What will
the sales
number
look like
based on
all of
this?

45. Brush past these
questions

46. and

47. you will
have drastically
overestimated your
revenue.

48. #5. The market is too
small

49. It’s easy
to pick a
niche that
doesn’t
seem too
challenging.

50. Remember you may face
competition

51. even in that niche

52. and

53. end up with a potential
market that is just too
small to support a
sustainable business

54. Make sure your market is
big enough

55. and growing
(And (I know what’s on your mind)

56. #6. Basic
copycat

57. Enter the many
thousand Groupon
clones around the world.

58. groupon sosasta
Working international
concepts have been launched
successfully locally

59. Fashionandyou

60. Doing this in a busy
market because you see
current players making
tons of money is a sure
recipe to burn cash and
stay small.

61. so

62. Be different, not “the
same but better”

63. # 7. Fast burner

64. You ramp up your costs for
a big development team to
match the massive revenues
you expect.

65. The revenues don’t happen

66. and

67. you’re suddenly burning
money faster than a new MP
planning gala dinners

68. Get into the market with the
basic product and start
generating revenue

69. When the
conversion
metrics show
you’re getting
it right

70. then you can grow the spend

71. There are more reasons why
startup businesses fail

72. But

73. these are the most
important and common

74. Of course

75. the
easiest
way not
to fail

76. is to not start

77. Fortunately

78. you’re not scared

79. and now you’re just a
little a little more likely to
make it.

81. @Abhishekshah