An alarming 92 percent of startups fail within 3 years. This is according to a report from Startup Genome. The report is based on a study of 3,200+ new technology companies. The report points out the reasons that these businesses fail.
Even if you are not a high-tech startup with lots of venture capital the lessons from the report should be relevant to you, especially if you are just starting a new business. Here are a couple important findings:
“Premature scaling is the most common reason for startups to perform worse. They tend to lose the battle early on by getting ahead of themselves. Startups can prematurely scale their team, their customer acquisition strategies or over build the product. ”
“Founders that learn are more successful. Startups that have helpful mentors, track performance metrics effectively, and learn from startup thought leaders raise 7x more money and have 3.5x better user growth.”
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