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The 2 biggest reasons start ups fail are: 1. No/not enough market demand for what your building 2. User acquisition costs exceed LTV. Those 2 things should be
by pascalxus 10y ago
The 2 biggest reasons start ups fail are:
1. No/not enough market demand for what your building
2. User acquisition costs exceed LTV.
Those 2 things should be the very top concern of any software entrepreneur/founders. I don't understand why the survey doesn't reflect that.
They say hiring good talent is a primary concern, but if that were really the case, wouldn't start ups be moving to cities where the labor supply was greater than the labor demand? And wouldn't there be a corresponding willingness to hire remote workers (as this greatly increases the pool of candidates)?
Moving to an area where labor is 1/2 as cheap, could double your runway, assuming there aren't other timed restraints.
>Nearly 1 in 5 founders say they're raising a unicorn
This is not necessarily optimism. some companies require that kind of scale in order to get the economies of scale required for profitability.
- Urbanxassassin 10y ago1. It only asked why they think they would fail. This is not a survey for those that already have failed, it's a report of where the current mindset is. So of course it's not at the forefront of their minds, raising money is first and then reading the market better. That's why "We couldn't raise enough capital" and "Growth stagnated" are above market demand being a reason why they think they will fail. 2. Going to places like the bay where demand is high and supply is meh, is behind the notorious idea that better engineers are there to compete for and/or other engineers will eventually come to the market from another city for the hunting. Sometimes it pays off, sometimes this doesn't. I rather play it safe too and go to a place with potentially good engineers and less demand, also offering remote work (But many think non-face-to-face interaction slows productivity).