+1 860-977-5879

ENTREPRENEUR CORNER

PLANNING FOR SUCESS


Partnership Management | Business Intelligence | Technology

Serving global clients since 2001


Strategies for Entrepreneurs

Startups Launch

How To Be Successful When Others Fail

The US is home to over 48,000 startups and is ranked as the most startup-friendly country in the world, but getting funding for a business and earning unicorn status isn’t clear cut when 90% of startups fail.


Startups are the feeder system for interjecting innovation into the marketplace across industry.  What we know about Startups:

  • Only 50% of businesses with employees survive five years.
  • The United States was home to 30.7 million small businesses in 2019.
  • San Francisco and Silicon Valley are the epicenter of entrepreneurship, home to 13.5% of all global startup deals.
  • 53% of American startups have at least one woman in an executive position.

Startups Failure Rates

Failure Rate Implication for Entrepreneurs

The failure rate of startup companies in the U.S. is 90%.  Failure rate implications for entrepreneurs  is an even more complex matter.

Validation of the market takes 2-3 times longer than founders expect.  Longer if they do not have deep expertise in their product core market.

The ability to quickly pivot 1-2 times when new data becomes available is the difference between winners and losers and realize 3.6x better user growth. Startups who can realign product offerings, delivery mechanisms, leverage strategic partners and/or retain value human capital raise 2.5x more capital.

Critical to success is the ability to plan for all contingencies - identify funding sources early,  timing of funding release, commitment to sponsors, advisors and partners.  Other best practices would include ensuring you have the ability to engage general counsel, understand  industry specific certification requirements and associated costs, identify infrastructure architecture including workplace tools and templates and finally beyond values, mission and a high-level strategy, the organization must be committed to the work of defining  financial, operational, technology and product roadmaps.

0