Avoiding the most common mistakes that lead to over 50% startup business failures [Video]

Many of us have heard the statistic that over 90% of startup companies fail. What you may not have heard, though, is that over 50% of these companies fail for reasons that are preventable. It’s vital that your company solves a problem that people care about. 34% of startups fail due to a lack of product market fit and 22% of companies fail due to marketing failures. It’s crucial for startups to ensure that their products solve challenges that customers actually have, rather than what they think the problems are.

There’s a common trap that entrepreneurs fall into. This concept is akin to the “Ikea effect,” where individuals place higher value on products they’ve personally assembled vs. something put together by someone else. Similarly, entrepreneurs might overvalue a solution simply because it’s their creation. To circumvent this bias, entrepreneurs need to engage actively with their target audience, conducting thorough research and interviews to uncover real needs and pain points. Iterative design and constant feedback are vital in refining a product that not only addresses a true market need but also resonates well with potential customers.

Get out there and talk to your prospective customers!