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The main reason so many startups fail is wrong assumptions. Too often founders think that their product is definitely going to succeed the way it is, without too much pivoting or changing their vision.
While usually it’s not possible, because of the nature of a startup itself. Steve Blank‘s definition for a startup is an “organization used to search for a repeatable and scalable business model”.
Organization used to search for a business model. No more, no less.

Startup is just the way to test your hypothesis about the market, and then, if your hypothesis prove themselves, build a business on them.
So the short answer to the question “why so many startups fail?” is that the founders don’t quite understand the nature of what they are doing and taking unconfirmed hypothesis as failures.

So what is the strategy for a successful startup? Testing your hypothesis very quickly and with allocation of very little resources.

The main reason so many startups fail is wrong assumptions. Too often founders think that their product is definitely going to succeed the way it is, without too much pivoting or changing their vision.
While usually it’s not possible, because of the nature of a startup itself. Steve Blank‘s definition for a startup is an “organization used to search for a repeatable and scalable business model”.
Organization used to search for a business model. No more, no less.

Startup is just the way to test your hypothesis about the market, and then, if your hypothesis prove themselves, build a business on them.
So the short answer to the question “why so many startups fail?” is that the founders don’t quite understand the nature of what they are doing and taking unconfirmed hypothesis as failures.

So what is the strategy for a successful startup? Testing your hypothesis very quickly and with allocation of very little resources.

 

Here’s a gift for you – free access to my invite-only email community:
Performance Marketing – Weekly How-tos delivered to your inbox

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