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The Early Warning Signs of a Failed Startup

According to research, over nine out of ten startups are destined to fail. That’s an astonishing number. Although the business press loves to discuss the sheer volume of startups springing up everywhere from Silicon Valley to Singapore, the future for most will not be a pretty one.

However, if you do have a startup, there are usually a few reasons why your business idea will fail. Not only that, but there are also some key indicators that will tell you when it happens. If you notice any of these turbulences occurring with your fledgling company, you will have a better chance of getting through the pitfalls. Let’s take a closer look at everything you need to know.


No focus on revenue
If there’s one thing that will sink your business quicker than a brick tossed in a swimming pool, it’s lack of money. Now, of course, there are dozens – if not hundreds – of concerns when it comes to running a startup, But unless you are generating revenue and getting your business up and running, it’s a huge warning sign that you won’t make it past the next quarter. Revenue is your ultimate goal, and it’s vital that you keep your focus if you want to avoid disaster.

Overworked/underworked employees
It’s easy to push your employees well beyond their limits when you are in the startup environment. Equally, it’s difficult to ensure a 100 percent productive environment. Team efficiency is critical, and if you either have people sitting around doing nothing, or completely stressed every time they come to work, your business may not be in as good shape as you might think.

Crippled by technology
The technology platforms you choose when you start a business are a lot more important than you might think. If you can’t scale up your technology quickly and efficiently, you just won’t be able to meet demand – and your productivity, processes, and overall business will be in serious trouble. Make sure you are working with an IT consulting and strategy expert who will talk you through your options when it comes to using the right systems. Your web host, servers, and databases all need to be able to scale up as your customer numbers do.

Many businesses have suffered from failure as a result of complacency. World leading brands – think Kodak, for example – have died a terrible death because of it. It’s vital that you work hard, get your product or service idea out there, and never assume that your approach is the best in class. Until you launch, you always run the risk of someone else blowing your idea out of the water before you even get it to market. Execution is critical – without it, your fantastic business plan won’t matter a jot.

Too busy
Finally, a lot of startup owners wear their busy days and nights as a badge of honor. But being busy is in no way equated to being productive. Ultimately, you need to ensure your mind is firmly centered on the tasks that matter, get a grip on delegation and outsource to others when you need to.