5 Reasons Why Most SaaS Startups Fail | Dan Martell
How do you avoid becoming a startup failure when the odds are stacked against you right from the start? In this video, I’m going to share with you the 5 biggest reasons why most startups fail.
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“You’re not suppose to succeed!”
“The numbers are against you from day one.”
Those were the words hurled at me across the board room from one of my mentors.
Up until that point I had so much confidence that failure wasn’t an option.
But the truth is - and you hear it all the time - most startups fail.
His words set me down a path of learning and implementing strategies to help protect me, my stakeholders, and my coaching clients from the 5 highest leading causes of startup death.
Over the years, I’ve had the chance to see the inner workings of 1000+ companies.
I’ve listened to the intimate, behind-the-scenes details and decisions from the founders behind them.
After seeing what works, what doesn’t, and what gives you a one-way ticket to the SaaS graveyard…
I’ve distilled those lessons into the big five for this week’s video.
When I sit back and look at my failures and those of my friends, I believe they can be traced back to one or more of these.
1. Market Problems
2. Business Model Failure
3. Poor Management Team
4. Running out of Cash
5. Product Problems
What’s hilarious, and part of #3, is the amount of companies that fail due to co-founder in-fighting...
... meaning they couldn’t see eye to eye on a critical part of the business (funding, product roadmap, market strategy, etc).
The one I see the most often when it comes to technology and innovation is #1...
... founders running around with some cool tech, with no clear customer problem to solve.
It’s a solution in search of a problem.
Always a scary proposition and the opposite of the way I encourage first time founders to start off (find customers before you develop your tech).
If you’ve got questions about either one of these five, be sure to leave a comment with the specifics and I’ll help you turn things around.
Keep up the hustle!
Dan “sell before you build” Martell
Don't forget to share this entrepreneurial advice with your friends, so they can learn too: https://youtu.be/TbvXL9HVnYM
ABOUT DAN MARTELL
“You can only keep what you give away.” That’s the mantra that’s shaped Dan Martell from a struggling 20-something business owner in the Canadian Maritimes (which is waaay out east) to a successful startup founder who’s raised more than $3 million in venture funding and exited not one... not two... but three tech businesses: Clarity.fm, Spheric and Flowtown.
You can only keep what you give away. That philosophy has led Dan to invest in 33+ early stage startups such as Udemy, Intercom, Unbounce and Foodspotting. It’s also helped him shape the future of Hootsuite as an advisor to the social media tour de force.
An activator, a tech geek, an adrenaline junkie and, yes, a romantic (ask his wife Renee), Dan has recently turned his attention to teaching startups a fundamental, little-discussed lesson that directly impacts their growth: how to scale. You’ll find not only incredible insights in every moment of every talk Dan gives - but also highly actionable takeaways that will propel your business forward. Because Dan gives freely of all that he knows. After all, you can only keep what you give away.
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