Attention entrepreneurs: if you're thinking about launching a new venture, then you need to read both the success stories and failure stories of others. You can learn from those who went before you and succeeded, but you can also learn from those who fell short of the mark. As you embark on your new entrepreneurial journey, you need to ask yourself, “Why do startups fail?”
Business Insider recently profiled 33 startups that failed and the reasons behind the failures. Here are just a few of the highlights from this invaluable article.
When I first saw the words condom keychain I thought to myself, "no wonder it failed." After giving the idea a bit more thought, though, I realized that it really wasn’t a bad idea. Looking back at my college years, I could name dozens of acquaintances, both male and female, who would have carried a condom keychain.
Robert Strauss chronicled his plethora of problems in Stanford Magazine: “Then came the fine-print details. According to the Food and Drug Administration, I needed to include a 'how to use' guide with each key chain. I realized I needed insurance in case some fool inadvertently Bobbittized himself with my product during a drunken tryst. My conversations with countless insurance agents are among my more forgettable experiences in the business.”
The concept behind EventVue was solid but the business acumen of the founders was its downfall. In its post-mortem, the founders listed several deadly strategic mistakes, including attempting to build a sales effort too early with too weak of a product after initial financing and going after an enterprise sales model without a recurring fee.
Interactive online sports network
What do most sports fans like to do? Talk smack to their opponent’s fans. This is where Youcastr would have come into play; the founders created an interactive online sports network that offered real-time chats, blog commentary, news columns and more.
The idea sounds great, right? But it failed because the founders weren’t passionate about the idea. Passion doesn’t mean instant success but if you aren’t passionate about what you do, you’re less likely to work hard at it.
For more information about these companies and the other 30 failed startups, head over to Business Insider: 33 Startups That Died Reveal Why They Failed.
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