Here is an interesting post regarding some reasons why startups might fail. They can look obvious but any entrepreneur should be aware of them.
Clairvoyance & Simplicité
For those who would be lazy reading the full article (although not that long), I have drawn the following outlines :
- They spend too much on sales and marketing before they’re ready
- The market outpaces the startup’s ability to execute
- There is no Entrepreneur
- The market takes too long to develop
- Failure risks are not properly identified
And I would personally add a few more:
- They fear to meet their market
- They wait for their product to be perfect before starting selling it
- There is no innovation, or it can be copied too easily
Regarding these potential factors of failure, or if properly avoided, factors of success, I wonder where a promising startup company like Goojet will go. Millions of euros have been invested and they have been developing their product for one year and a half, but they only went into public beta a few days ago, while the field is highly competitive and there is a strong need for network externalities (the more people the better), especially since their revenue model is based on a large user base.
Would the best outcome for them be to sell their technology/platform before other players catch them up (and they can make tens of millions that way, which is not bad for a company without clients!), or to meet the challenge and keep on faster with a much more reactive and adaptative strategy? You should not doom a company unless you are shortselling it…