ChubbyBrain recently published a new report on Start-up failure, specifically “Analyzing 32 Startup Failure Post-Mortems to Find the 20 Top Reasons that Startups Fail”….and it’s not what you think.
The top three reasons are:
3) NOT the right team – important but not top
2) Building a solution looking for a problem
The number 1) is….
….not actively seeking or using customer feedback
In their words – “Ignoring your users is a tried and true way to fail. Tunnel vision and not gathering user feedback are fatal flaws for most startups. I’d recommend not going more than two or three months from the initial start to getting in the hands of prospects that are truly objective.”
What is interesting here is that it is NOT enough simply to obtain feedback, rather it has to be acted on. Wise words, probably obvious but so many fail to do this. Nice study and the full graph is shown below.