I will always quote “ the fear of failure is the beginning of foolishness.”
Business can be likened to a baby.
It will make mistakes.
It will fail, it will rise, it will fail again.
What makes a successful business isn’t the number of successes.
A successful business is rewarded based on the number of times it failed and picked itself up to rise again.
It’s normal for businesses to fail.
It’s normal for businesses to make mistakes, but it’s also important to learn from them so you don’t make those mistakes.
My little brother, while learning to walk, tried to sit on a chair taller than him.
He attempted to climb the chair eight times.
For each attempt, he restrategized and repositioned how he could try to balance and climb the chair.
For each attempt, he didn’t make the same mistake. He looked at me for help, but I refused to help him.
Eventually, he did it, and you could see the joy in his face when he successfully sat on the chair.
A new business could be likened to this scenario. Learning from failure is the smartest way to succeed in business.
Many startups fail, not because the founders lacked passion, but because of poor planning, wrong timing, market misfit, or financial mismanagement.
Understanding why startups fail helps future entrepreneurs avoid the same traps.
Top Reasons Why Startups Fail
1. No Market Need (42%)
They built something people didn’t want or didn’t solve a real problem.
E.g., Juicero – A $400 juicer that squeezed pre-packaged juice bags.
2. Ran Out of Cash (29%)
Poor financial management or no steady income led to bankruptcy.
E.g., Quibi – Burned nearly $2 billion in 6 months with little return.
3. Wrong Team (23%)
Lack of the right skills, poor leadership, or team conflicts.
4. Got Outcompeted (19%)
Competitors moved faster, smarter, or cheaper.
5. Pricing/Cost Issues (18%)
The product was either overpriced or too costly to make/sell at a profit.
6. Poor Product (17%)
Bad user experience, bugs, or a product that didn’t deliver.
Seven Lessons You Can Learn from Failed Start-ups:
1. Solve a Real Problem
Many startups fail because they build cool products, not needed ones.
Always validate the demand before building — talk to real customers first. If you’re into skin care products, talk to your customers first.
Ask questions.
Consult with them first.
Don’t just jump into selling the product; address the problem before providing a solution.
2. Timing Is Everything
“Even a great idea will fail if the market isn’t ready.”
Some startups launch too early (like Quibi during COVID) or too late (like Friendster before Facebook took off).
Study market trends, consumer behaviour, and technological readiness.
3. Don’t Burn Cash Recklessly
“Big funding doesn’t guarantee success.”
Startups like Beepi and Juicero raised millions but had no clear path to profitability.
Spend wisely, track ROI, and scale sustainably.
4. Choose the Right Team
“You can’t build a winning business with a losing team.”
Many startups collapse due to poor leadership, lack of expertise, or team conflict.
Teamwork makes the job easier.
Make sure you are what you want your team to be.
Select hardworking people who are passionate about the job as part of your team. Choose a team that can think and provide a solution to a problem in your absence.
5. Listen to Your Customers
“Ignoring user feedback is a fast track to failure.”
Some startups kept building based on assumptions, not data.
Regularly test, iterate, and adapt based on real-world user feedback. Listen to every one of your customers, even when it looks like nagging or their stress is too much.
You should remember that you’re building a brand and you have an identity to protect. It takes months to build a house, but it takes minutes to tear it down.
Your customers should be your priority.
6. Don’t Grow Too Fast
“Scaling before product-market fit is a deadly mistake.”
Companies like Jawbone grew rapidly without fixing core product flaws. Focus on perfecting your product before investing in marketing or expansion.
Upgrade your product always.
Make sure you give out quality instead of quantity.
Fix every loophole in your business before you push it out.
Discover mistakes and flaws and improve them.
7. Be Honest and Ethical
“Shortcuts kill trust. Trust builds brands.”
Theranos promised life-changing health tech that never worked and faced criminal charges.
Be transparent with investors, users, and your team. Integrity sustains long-term success.
Tips to Avoid Startup Failure
1. Start with a real problem, not just a cool idea.
2. Validate with real customers before building.
3 . Keep your expenses lean until you’re profitable.
4. Build a strong, adaptable team with clear roles.
5. Listen and adapt to customer feedback.
6. Tell your brand story well – people connect with stories.
Failing is not the opposite of success; it’s part of success — if you learn from it.”
