Here's how you can analyze and evaluate the reasons behind a failed startup to prevent future failures.

Analyzing and evaluating the reasons behind a failed startup is crucial for learning and preventing future failures. Collect and review all relevant data, including financial records, business plans, market research, and customer feedback. Hold a meeting with key team members to discuss the startup’s lifecycle, from inception to failure. Ensure that everyone feels comfortable sharing honest feedback. Evaluate whether there was a real demand for your product or service. Did the market need what you were offering? Analyze if your revenue model was sustainable. Were your pricing, cost structure, and revenue streams viable?

So your startup tanked? Shocking. - Did you even check if anyone wanted your solution? - Most likely, you invented a problem no one has. - Market research is not a fun suggestion; it’s a MUST. - When everyone else is swimming in the market, do you really think you’ll skate by? And remember, if your idea sounds great at the bar but flops in reality, it's time for a rethink. Follow me for actually good startup advice!

When a startup fails, scrutinize the market dynamics. Did your product meet a real need, or solve a non-existent problem? Evaluate your market research, value proposition, timing, and competition. This analysis can guide future ventures to better align with market demands. Key Considerations: 1. Painkiller vs. Vitamin Business: Determine if your business addresses a critical pain point (painkiller) or a nice-to-have solution (vitamin). Painkillers generally have a higher success rate due to the actual need they fulfill. 2. Market Research Depth: Go beyond market size; assess annual growth, and horizontal and vertical growth opportunities. This helps prevent stagnation and ensures sustainable growth.

No.1 reason for startup failure — is not understanding the market. This is a proven fact based on many years of research across many startup ecosystems. The specifics of this are: 1. No market need — customers not needing the product you produce or build. 2. Problems entering the market and achieving product-market fit. Therefore reflect on these 2 things and be totally objective about how well you understood your customers need and a plan to get your product in front of them.

Objectively ask yourself: 1. What is the problem in the market and why isn’t being solved? 2. Is the proposed solution a feature or a business? 3. How big is the market opportunity? 4. Who are the target customers? 5. How long and how much will it cost to gain customers? 6. What resources do I need to find out before I need to scale up? 7. What are the unit economics? 8. How much capital do I need to get to break even? 9. How will I measure and track progress? 10. How much do I believe in the opportunity and how open am I to receiving feedback and input from others? A business model canvas is a great tool to use as a starting point. If you are not prepared with this detail in advance, you are not likely to succeed.

Not managing runway capital aptly. Not applying the principles of "Doing things that don't scale", essay by Paul Graham. Going for a huge market, instead of targeting a niche sub-section of it. It is better to be a big fish in a small pond first, make your niche customers happy and then expand to other, different customer profiles.

Pour un bon démarrage, choisir un tableau de bord facilement lisible avec des indicateurs clés qui permettent d'adapter la montée en puissance 📈 Dans un démarrage, tout ne se passe pas forcément comme prévu, il faut pouvoir rectifier le tir le plus tôt possible 👁️🗨️

It's all about the people! 1. Only Hire When Necessary Resist the urge to expand your team too early. While adding more people might seem like it would increase productivity, it often results in more time spent on management and coordination. Only hire if your team lacks a critical skill needed for growth. 2. Ensure Culture Fit Find team members who share your values and vision. A misaligned team can lead to conflicts and wasted time. Ensure new hires believe in your mission and are as driven as you for a cohesive environment. 3. Bring in Unique Skills Hire people who bring new, valuable skills to your team. Avoid novices who require extensive training. Seek out experienced professionals who can contribute and enhance your efficiency.

The top startup money troubles — that are responsible for startup failure are: Running out of money — because you’re spending more than you’re making. This is probably because you don’t have a good sales strategy. Not making enough revenue — probably because again not having a good sales strategy or needing to raise your prices customers pay. Not raising investment — this can often be because you don’t have enough proof points or customer traction or you have not addressed your key risk factors. The wrong business model — a common issue for startups that have ok prices and sales but no system for automating the onboarding and retaining of customers.

The biggest financial fumble for a startup is a poor understanding and hence poor management of cash flow. As a startup owner, your most important goal is generating revenue. Therefore, ensure you have a sustainable business model and a pricing strategy that makes sense for both your business and the customers. As revenue starts to flow, you need to ensure enough runway to keep the business afloat. This can be achieved through funding or reinvesting revenue into the business. You must have a clear picture of the sources of money and how the money is going to be distributed over time. Other common pitfalls include: - Underestimating costs - Overestimating revenue - Overspending on unnecessary expense

If your startup fails, you need to evaluate your product. Consider the following questions: 1. Does the product solve a real problem? 2. Does the product function properly, even if it's just the basic features? 3. Is the product user-friendly? 4. Have you received and incorporated customer feedback? If you answered "no" to any of these questions, it's time to reflect and make necessary changes to your product.

From experience of advising and building 40+ accelerators around the world, many startups pivot to avoid failure. Here are a few reasons why and points at which you may consider pivoting: 1. Greater focus — for better focus rather that leads to a change in the product. 2. Greater value — for greater value that a the new product focus brings to customers. 3. Greater sustainability — to be more sustainable for your company and your customers. 4. From feedback — your customers have given feedback that helps you rethink the product or how you sell it.

Every startup encounters pivot points, where a decision can significantly alter its trajectory. It is important to identify those pivot points for your failed startup. The most common pivot points reported by failed startup owners include: - Business Model Decisions - Product Adjustments - Incorporation of Customer Feedback (also the rate of incorporation) A clear and thorough analysis of these mistakes will help you avoid repeating predictable errors in the future.

“Failure is not failure until you’ve given up.” Building a startup is one of the few arena’s of life that failure isn’t just a failure. It’s a learning experience. And it is this experience that sets you up for success. So embrace your setbacks, and what you learned from it. Theses lessons will be the building blocks to your future success.

Call a Founder Reach out to the founder of the failed startup, if possible. Founders are often willing to share their experiences, especially if you approach them with respect and curiosity. They can provide firsthand insights into the challenges and decisions that led to the failure. Their unique perspective can offer valuable lessons that aren’t evident from an external analysis.