3 MOST COMMON REASONS,

WHY 90% OF STARTUPS FAIL.

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I THOUGHT MY STARTUP MADE

COMPLETE SENSE.

Every Successful Entrepreneur

DO YOU KNOW
THAT 42% OF
STARTUPS FAIL
BECAUSE NO ONE
WANTS TO BUY
THEIR PRODUCT?
#1; PRODUCT/
MARKET FIT.
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HOW TO

▸ Determine your target customer.

▸ Identify underserved customer needs.
▸ Define your value proposition.
▸ Specify your minimum variable product feature set.
▸ Create your minimum viable product prototype.
▸ Test your minimum viable product with customer.
#2; PREMATURE
SCALING
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WHY

▸ Hiring too many people too early.

▸ Spending too much on customer acquisition before

product/market fit and repeatable scalable business
model.

▸ Focusing too much on profit maximisation too early.

▸ Over-planning, executing with regular feedback loop.

▸ Not adapting business model to a changing market.

#3; FUNDING RAISING
CAN KILL STARTUPS.
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STORY TIME.

▸ The inexperienced young guy from a premier institute with

no business sense raises a handsome sum from investors
by showing an idea which is the future.

▸ Since the future is backed by a premier school pass out

brain, they decide to invest. Since the investor wants
results and our entrepreneur has not experience in what to
do with money.
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CONTINUED …

▸ He/she decided to put the business on steroids by:

▸ Unrealistic hiring : Hire the best (best come at a cost)

▸ Buying the most expensive space in the town

▸ Buying the best of best furniture, computer hardware,

etc

▸ Buying the best ad place in Newspaper, TV, etc

▸ Running campaigns, which are like headless chicken

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CONTINUED…
▸ In short spending money without a thought process on how to
recover money and then they suddenly realise “Shit! My
expense has been overrunning my revenue by 40%. What do i
do now?”

▸ They approach another investor and dilute more stake of theirs.

▸ You must remember. Easy Investment is like drugs. It kills your

thinking process.

▸ You approach the second investor and repeat the same old
story with different numbers to the second one.
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CONTINUED…
▸ They invest and now you have lost another major chunk of your
stake %.

▸ The process keeps on repeating until you lose it all and then you
are left as a minority stake holder in a company with less than
5%.

▸ By now investors realise, you have no idea about running a

business and they replace you with one of their own guys and
give you meaningless designations.

▸ You lose control of your dream.

DEALING WITH
3 MOST STATEMENTS,

BY YOUR CLIENTS.
#1; WHEN CLIENT SAYS,
"YOUR PRICE IS TOO
HIGH!”
#2; CLIENTS SAY,
“LET ME THINK ABOUT IT.”
#3; CLIENTS SAY,
"I'LL GET BACK TO YOU."
THANK YOU

By Sachin Ratawa &

Raja Dey