Why do most startups fail after a few months of launching? - KQ Den

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Friday, 9 February 2018

Why do most startups fail after a few months of launching?


Reason #1: Hiring Too Soon.
An influx of new employees without verifying their necessity can even make existing hires less productive.
Reason #2: Spending It, Simply Because Money Was Raised
Good quote: “The reality of fundraising is a lot of times, a lot people think its some sort of metric of success. But really the metric of success is if you can quickly process that capital and turn it into new, better and more improved metrics that you’ve agreed upon with your investor.”
- Matt Tillman, CEO & Co-founder of Haven, speaking at a recent Startup Grind event in Singapore.
Reason #3: Spending on “Startup Culture” Instead of Your Own
spectacular examples of overspending on offices can sometimes seem like there is a focus on “startup culture” vs. your actual culture. Examples abound: like $3 billion Powa that went bankrupt last year due to “overspending on lavish offices and partying”. Or the even bigger wake-up calls, like Dropbox, who in 2016 cut down significantly on lavish perks.
Best of all, it's not about spending huge sums of money - it's about finding what matters to people, and operating within a culture of openness that allows people to find and pursue what matters to them...

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