The underlying cause of most startup failures
Posted by Josh Taylor / September 30, 2013 entrepreneurstartups
Every entrepreneur has a different reason his or her first (or second, or third) startup failed. But Inc argues that there’s one underlying reason all startups fail:
Here’s the problem: Founders don’t often know what they’re doing. No, I’m not trying to be flippant here. It’s not a crime, just the truth. They don’t know what they don’t know.
And even if they have the wherewithal to ask smart people the right questions, they get all sorts of conflicting answers and don’t know who to listen to. So they end up taking their best shot at a plan and operating more or less in a vacuum. Sometimes that works out. But not usually.
The truth is that, when it comes to startups, there are simply too many variables, too many tough decisions to make, and too many voices and opinions. Moreover, founders can’t help but have relatively narrow and oftentimes limited experience. I don’t care who you are; that’s a tough equation to solve.
That doesn’t mean you’re doomed, though. The full article offers a bunch of advice that holds up no matter what variables are in play.
Full story on Inc.
Photo credit: Fotolia
Here’s another reason – often overlooked. Many entrepreneur/managers don’t know how to deal with non-performance – which is the biggest cause of business failure. This is very insightful. http://www.btmgmt.net/the-biggest-cause-of-business-failure/