Question:

Why do startups fail?

2 answers 04 DEC 2018

QA Answers

Paul Orlando

There are many reasons. Here are a few of the big ones. Lower your risk of

failing because of these reasons and you'll be better off.

Founder problems. The founding team fights over direction, equity,

compensation, growth, and many of issues. To reduce your risk of this, have the

hard talks about your perspectives and write down responsibilities. Write up a

founders' agreement. This is not for legal purposes as much as it is to ensure

that you have these difficult conversations early on.

Build something that people want. Sounds simple, but many startups instead

build things that the founding team thinks are cool. If few other people agree

or if no one eventually wants to pay for what you are building, the business is

likely to fail.

Look to your location for talent, problem to solve, and perspective. That means

that you might end up building something different, or at least differently, than

if you were in another location. Avoid building something that works

There are many reasons. Here are a few of the big ones. Lower your risk of

failing because of these reasons and you'll be better off.

Founder problems. The founding team fights over direction, equity,

compensation, growth, and many of issues. To reduce your risk of this, have the

hard talks about your perspectives and write down responsibilities. Write up a

founders' agreement. This is not for legal purposes as much as it is to ensure

that you have these difficult conversations early on.

Build something that people want. Sounds simple, but many startups instead

build things that the founding team thinks are cool. If few other people agree

or if no one eventually wants to pay for what you are building, the business is

likely to fail.

Look to your location for talent, problem to solve, and perspective. That means

that you might end up building something different, or at least differently, than

if you were in another location. Avoid building something that works