Startup Rule #1: SURVIVE.
Adam Rifkin stashed this in Luck!
Stashed in: Founders, Startups, 106 Miles, Scaling, Retweet this., Problem?, Funding, Startup Lessons, Mission, Business Advice, @paulg, #startuptriplets, Startup Advice, Infographics!, Survivor!, startup, VC, Becoming, Startups
Most companies fail because they run out of money, not enough people want their products, and/or the people running the company lose faith that they're on the right path. No wonder starting a company is hard.
My favorite article on the subject comes from Robert X. Cringely, who wrote in Rules of the Road,
High-tech startups fail for only three reasons: stupidity, luck, and greed.
Cringely says 19 out of 20 startups fail, and elaborates on three tips for would-be startup entrepreneurs:
Avoid stupid and unlucky people. If you are stupid or have bad luck, don't start a startup.
Develop a product that you want to do and that people want, not one that they want you to do or that no one wants.
- Don't take venture funding too soon.
Other articles I recommend:
Louis Gray, Not all Startups go to Heaven
- Quora, What are the most common ways for startups to die?
In my opinion the best way not to die is to have a mission you truly believe in, and don't prematurely optimize.
Solve today's problems today, and don't solve the problems you don't have.
And, as always, I recommend reading The Best Convos about FAIL...
Thanks for the chart Adam. This is fantastic.
It really is, and it rewards multiple viewings.
How did I miss this? This is 100% true. I have lived it.
You didn't miss it at all, Mark.
And yes, it's a very hard lesson to learn, especially when you live through it.