Creating a startup is cool. Work for rapid growing is exciting but what happens when the “looking for traction” process never ends?
At what point is a startup no longer a “startup”?
A large number of European young startups have met with success.
Their model worked, and now their project is a real business.
But there are hundreds, mostly thousands startups that didn’t achieve their goals and for them it’s now hard to raise new funds.
Apart from the “Silicon Valley” best practices, there isn’t a universal definition of what a startup is and when i t stops being a startup, but we’re pretty sure that if some time has passed since your launch and you didn’t meet with a big success, it’s time to do something. It’s time to do the right thing.
Startups can fail:
maybe, you’ve not entered the market at just the right time;
you’ve a smart project but you’re not smart enough in marketing it;
you’ve not been able to meet the projected return on investment;
your projection has been not achieved;
you haven’t met the right investors.
A study by Shikhar Ghosh, a professor at Harvard Business School, examined the category and the failer rate of the startups that fail:
|CATEGORY OF STARTUP FAILURE||FAIREL RATE|
|Liquidation of assets losses for investors||30% – 40%|
|Inability to meet project return on Investment||70% – 80%|
|Falling short of a target or declared projection||90% – 95%|
But in most cases in failed startup there are good and enthusiast founders, very innovative ideas and, frequently, good services and products very close to market success.