20 reasons for the failure of the entrepreneurial company no market demand ranked first
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NetEase Francisco September 26th message, the United States science and technology market research firm CB Insights recently through the analysis of failure case 101 technology startups, summed up the 20 major causes of failure of startups, including financing burn, lack of competitiveness, bad products and business models such as poor.
for the following 20 reasons:
1, there is no need to analyze the development of product
42% failed startups have had this problem. Founder of the implementation of their own creativity, but did not find out whether the idea is in line with market demand. Patient Communicator founder of CB Insights, said: I realized that in fact we do not have customers, because no one is interested in our products. Doctors need more patients than an efficient office."
2, financing burn, unable to obtain new financing
29% failed startups encountered this problem. Flud’s team told CB Insights that, in fact, the failure of Flud because the company failed to raise new funds.
3, the team is not
23% startups fail to be able to direct the big picture. The reason is interesting, most VCs said, before the investment is the first consideration of the team, followed by creativity.
4, less than
venture capitalists, billionaire Peter Thiel (Peter Thiel) suggested that startups avoid competition, access to other people did not try the field. About 19% of companies do not do so.
5, pricing / cost problems
for start-up companies, product pricing can not be too high, can not be too low, we should find the most suitable pricing. Unfortunately, 18% of the companies did not find the right pricing.
6, bad product
17% start-up companies to develop the product is very bad. The founder of GameLayers recalls, I think the company should put down the figure, easy to develop interactive products.
7, lack of business model
good ideas need a good business model. This needs to find the way to achieve the realization of the lack of business model led to 17% of the venture company eventually failed.
8, bad marketing
It is not enough for
to know how to write code or develop good products, but also to use effective marketing to sell more products. 14% of start-up companies do not have a good marketing team.
9, ignoring the customer
Harvard Business School professor Christensen (Clayton >