Why Most Startups Fail?


Sustenance is the name of the Start-up game!


Yes! it is hard to believe so may ideas fail not for the quality, but they fail to the sustenance level of operation.


Sustenance often comes when the market side crosses the critical mass.  The critical mass is not a small set of Niche customers, rather a wide range of small clusters who are not to adopt the innovative product and services so early.


As a founder Startup founder sets off to build the initial valued product he or she might find the early set of customers quite soon. However, this is where the founder, possibly after the initial round of funding gets fooled by ROI.


He or she starts believing by scaling up the same kinds of things s/he can get the same kind of response, for the next level of customers.


Hang on! There is something called The Law of Diminishing Returns


The same thing that attracted the ‘Innovators’ and ‘Early-Adopters’ will not work for the ‘Mass Market’. It is at this point, that the chasm is reached.


However, the Startup teams keep on investing more on the same thing that worked so far because of blind faith.


The investors, if any, press the panic button, in the meantime. This aggravates the situation. With not a clear alternative route in sight, the no young team fall into the fatalities of destiny, not knowing that crossing this chasm has more to do which looking outward into the audience rather than looking inside at the ROI data.


With cash burning out on a daily basis, results on ROI no more impressive, the vision getting disillusioned, action points becoming myopic and losing staff motivations bring the eventual death of the radically well-intended venture.


Often, the realization for the need of an alternative way to head the market becomes evident, the cash crunch and patience doesn’t really allow the ship to steer a different route.


However, just in such a scenario, with the sustenance power in place much of it can be reversed. Although there is no guarantee of success, however, the power to sustain gives a strong footing to do the right things by consulting the right expert and agencies in helping to cross the mass market chasm.



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