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Why Startups Fail [Infographic] October 3, 2011

Posted by Ian Cheng in Funding.
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Starting a company consists of many different levels which you, as the owner, must cross in order to make it a profitable enough business to stay afloat. It’s not always easy to always find solutions for your ideas to keep the revenue coming in. Diana always tells me that keeping your mind set on success will make the success come to you. That’s what we have both been doing since we started working together, and if we didn’t do that, I don’t think that we would have been able to stay dedicated as long as we have. It’s always fun when you find new ways to do things that will not only optimize your time, but also allow for another revenue stream to enter your company.

If there are no ideas, there is no progression. As a business owner, you really have to stay focused during the whole process. So, why is it that startups fail? Well, if you have a look at this infographic from Visual.ly, you’ll get a good look at the reasons. Of course, it’s different for each company, but insufficient dedication and ideas are probably the main reasons why a company doesn’t succeed and stay afloat. There are many levels within these two, and you will understand that by looking at this information.

I was surprised to see that most companies out-scale themselves before they have even seen sufficient progress to use up their acquired capacity. It may be a little bit hard to understand what I mean, but for example, if a company buys more servers than they have traffic, they have obviously spent their money on the wrong thing. It’s always better to scale slow and when needed, instead of the other way around. Even Twitter is doing that… remember the Fail Whale?

When it comes to ideas, even the giant Google had trouble figuring out how to monetize in the beginning. It was someone else’s idea that made them profitable, and they are now paying for his discovery. So as you see, even the most successful companies have struggled with some decisions in their past, and that is probably why they are so successful today, because they found a way around their growth.

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