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The 20 Reasons Startups Fail

Build Your Startup Like a Serial Entrepreneur

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A common metric used in the startup industry is that one of 10 startups will succeed, or, conversely, that nine out of 10 startups will fail. This metric is what the industry is using as the barometer of success.

Why is it that if startups have a 90% failure rate, that's okay? And why is it that if we at Fluent get just 10% of the startups that we work with to succeed, folks would consider us to be doing our jobs well?

CB Insights reported on The Top 20 Reasons Why Startups Fail. You will see looking at their list (to the right) that startups face some very daunting challenges. From our years of experience in the field, we ask: What if the industry is wrong in saying that only one out of 10 startups can succeed? What if doing our job of founder support requires a much higher success rate? What if all of the problems listed in the CB Insights article don't actually have to be problems that plague our industry? What if most of these things are avoidable for founders?

In our program, we are setting out to change the narrative that normalizes a high failure rate. We believe we can help prevent 16 of the top 20 problems that cause startups to fail.

There are four items on that list that we do not have control over. One is not building the right team. Ultimately, it's on you to to assemble the right team and have the right composition of people to actually tackle the problem. The next piece is the product being mis-timed. Additionally, if you don’t feel like you’ve got the passion to keep pursuing this, we can't help with that. Finally, legal challenges are out of our realm of expertise.

However, the other 16 potential failure points we truly do believe are avoidable mistakes. Though many, many startups make them, expert coaching can help avoid them all.

Our goal in the program is to change the narrative from only one out of 10 startups being successful to 10 out of 10 startups being successful. By leveraging our tools and resources, we believe we can make that happen.