Smanek, one reason why the failure rate of start-up failure rates are so high is because the founders of the start-up don't have a sustainable business model, o

Smanek, one reason why the failure rate of start-up failure rates are so high is because the founders of the start-up don't have a sustainable business model, or they don't know how to best convey the value proposition to customers and investors. I heard a story about two ladies who sold gift baskets back when it was novel (80s). Initially it was just a hobby, but they turned it into a business because of overwhelming demand. After several years of doing this, working 70 hours week, they looked at their books and realized they were only making 10K profit each per year. Ok? That means they're only making a few bucks an hour. They made a product that people loved, but they didn't make any money. You need a viable business model if you want your business to succeed.