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What are the main reasons of failing mobile app (Tech) startups?

I am thinking to start a tech startup, but before that i wanna know about the reasons of failing startups to avoid them. I have done homework on that. Read many blogs, articles but i am not satisfied, so to be completely satisfied i am posting here to find the best answer of my questions.

18 Replies

Joe Albano, PhD
8
0
Joe Albano, PhD Advisor
Using the business of entrepreneurialism to turn ideas into products and products into sustainable businesses.
Biggest reason that startups fail: building a product/service that no one wants.

Best way to prevent: build, test, and validate your business model.

Remember your idea is not your product and your product is not your business.
Trevor Heisler
2
0
Trevor Heisler Entrepreneur • Advisor
Master Storyteller and Builder of Brands. PR, IR.
Sometimes an app developer may have a great idea but it never gains traction. Sometimes this is due to not giving enough thought to marketing, or more specifically, properly developing an online presence. It seems odd that a tech-focused start-up would have a poor online presence, but I have seen it happen several times - enough times in fact that I decided to write a blog post about it several months ago (http://www.heislercommunications.com/blog/get-more-social-media-followers-for-your-mobile-app).
Sherman Sall
0
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Sherman Sall Entrepreneur • Advisor
Founder at Startency
Please have a good read:

http://startency.com/funding-early-stage-startups/
Ken Anderson
0
0
Ken Anderson Advisor
Director, Entrepreneurial and Small Business Development, Delaware Economic Development Office
Bad things happen when your start up fails to acquire customers, generate revenue and make a profit. Failure to acquire customers says volumes about your offering and the general viability of what you are attempting to do in your chosen marketplace. It will affect the financial health and sustainability of your venture.
Joe Albano, PhD
1
0
Joe Albano, PhD Advisor
Using the business of entrepreneurialism to turn ideas into products and products into sustainable businesses.
I put together a blog post with a few thoughtson market discovery:http://www.logika-usa.com/markets-developed-or-discovered/
Tim Early
0
0
Tim Early Entrepreneur
Managing Partner - Occasional Riot
A start-up product or service must have at least one (but better yet two) characteristic....better than, cheaper than, or faster delivery than competitors unless you're selling vapor ware (the Rainmaker). Also, your customers need to know you exist. With greater testing and analysis you may be able to reduce your losses or at least feel better about greater losses. Most lose....a few win but you've got to be in the game.
Brett Gentry
0
0
Brett Gentry Entrepreneur
Program | Product | Operations | SaaS/IaaS Engineering
Read Lean Startup.
Irwin Stein
2
2
Irwin Stein Advisor
Very experienced (40 years) corporate,securities and real estate attorney.
Bad things happen when you rely on blogs or FD for advice. Most startups fail for 2 reasons 1) lack of capital and 2) lack of business smarts. Both can be acquired. You need enough money to hire people with actual experience. A lot of people who are looking for investors because they have a great idea are woefully short on the ability to execute. Joe Albano offered some solid advice. The rest of it, not so much.
Jason Gibb
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Jason Gibb Entrepreneur
Real Estate, Director & Business Development, MBA, CMA
During my days working in Hollywood on writing scripts at Warner Bros. one of the rules of writing action sequences was to never say, "John starts running." In this case it is "thinking to start a tech startup." As the grand philosopher Yoda says there is only "Do. Or do not, there is no try." The correct action is "John runs." Best to be and do, focusing on success not on avoiding failures. Failures will come, they are unavoidable, but necessary on the road to success. There is no hero without a process of obstacles, challenges, friends, enemies and allies. The only reason for failing is mindset and other people screwing you, so pick your partners, employees, customers, etc. well. Good luck.
Joseph Wang
5
0
Joseph Wang Entrepreneur
Chief Science Officer at Bitquant Research Laboratories
I don't think you can avoid failure, but the goal here is to experiment heavily so that you fail early, fail often, and fail cheaply.

One thing that's important is to have enough capital to do what it is that you are trying to do. As long as you can conserve cash, then if you fail, you can put that into a learning experience and keep moving forward. If you run out of cash, then that's it.

Just one lesson for me which I learned today. I was talking to a company that I had seen a year and a half ago. When I saw them 18 months ago, I took one look at figured out that their business model simply was not going to work. It turned out that I was completely correct in my assessment. However, it turned out that once they figured out that their business model was just not going to work, they discovered a market niche that I hadn't thought of, and by tweaking their failed business model a little, they seem to be doing well.

So I think the lesson here is that the important thing is how you react to when things to wrong, than if you get everything right.

Also if you want something more relevant to mobile apps. One problem in mobile apps is that you end up with network effects, so in the end "there can be only one." Google wins. Facebook wins. Twitter wins. The problem is that if you can only have one winner, then everyone else has to lose. A related problem is that a lot of the strategies that you use against category killers don't work.

For example, in the off-line world, you can go local or go guerilla. You might not be the supreme tire retailer of the world, but you can be the supreme tire retailer in Jackson City, Mississippi. Also you can in the offline world find something out about Jackson City, Mississippi that the king of tires doesn't know about. The trouble with mobile apps is that 1) you can't go local. The google of Jackson City, Mississippi is google and 2) you can't really go guerrilla, since anything that you do gets quickly found out and people that have access to big data can run rings around you.
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