Discover why marketing can steer your venture toward success and laugh at failure.
Contents
On X and elsewhere, it often romanticizes all of the founder’s success stories, just to sell well.
But survivorship bias sometimes creates a picture that is all too pretty. Instead, we should also analyze the stories of failure and remember that in reality, many startups often crash-land in the first three years since creation.
First-time entrepreneurs—inspired to launch their startups—often encounter both the complex challenges and exciting experiences of creating a company from scratch.
This feeling of purpose and being a part of the “next big thing” can explain why talented people are willing to sacrifice their time and money, for building a new startup. As well, let’s not discount the ability to manage tasks with near complete freedom and the feeling of bettering someone’s life.
When the fantasy wears off, reality hits. Rather, smart entrepreneurs should study exactly why startups fail, identify the problem, and then develop a solution.
Startup failure, the stats
Compared to the last ten or even twenty years, the essence of a business currently is centered around increasing market share and brand awareness at any cost.
For instance, while entry barriers have dropped, the quantity of apps in app stores has been rising substantially lately.
This implies that while it can be considerably simpler to get started now than in the past, it can be difficult to garner enough interest and endure over time.
This is when it helps to look at previous startup failures. Although there are many reasons why companies fail, I’ve narrowed them down to two primary groups: team and marketing.
Analyzing the data, only around one-third of startups survive for 10 years, with the majority failing in their first year.
Furthermore, the overall startup failure rate in 2024 was roughly 90%, making it one of the worst rates for new enterprises. Projects in the transportation, insurance, banking, retail, real estate, and construction industries usually have the highest failure rates.
But you should never let numbers determine whether or not you go for it. In the past, a lot of things that we now consider vital were frequently considered unnecessary. Creating something worthwhile out of nothing is never easy, but it always has its rewards.
Anyhow, let’s take a look at the issue of marketing (team I will look at in another post).
Insufficient market research
Insufficient market research is the cause of many frequent issues that occur between the product/service and the customers, including user-unfriendly products, poorly timed products, price problems, etc.
Lack of market demand was one of the big issues facing entrepreneurs, affecting 42% of startup founders.
For instance, in the already crowded streaming market already dominated by behemoths like Netflix and Hulu, the mobile streaming startup Quibi, which offered short-form, high-quality content specifically designed for mobile viewing, closed shop in January 2021. The startup was founded in April 2020. Ouch!
Too often, entrepreneurs ignore the real conditions of the current market and instead entirely rely on their own concepts and viewpoints. If market research is undervalued, it may hinder the ability to address consumer demands and increase the likelihood of startup failures.
A good or service that customers are ready to pay for and utilize to solve a problem is necessary for product market fit. Therefore, starting a new company usually involves a thorough research process, knowing your ideal persona, and ideally starting far in advance of considering the actual product.
Crappy marketing execution
It’s a common scenario: you’ve got a product that fits the market perfectly, but it’s languishing on the shelves.
Why?
Often, the issue isn’t the product itself, but the marketing—or lack thereof. Companies either sell their products in a way that fails to grab attention, or they miss the mark on what consumers are actually looking for.
You can have the best product in the world, but if no one knows about it or if you’re highlighting the wrong features, it still won’t sell. Time and time again I’ve seen it, many entrepreneurs of startups become so engrossed in their product that they lose sight of the significance of marketing.
They pour their hearts into development, convinced that their innovation will sell itself. But here’s the hard truth: it won’t.
So what should we do instead? I suggest instead to think of your product or service as a story. And, in any great story, the hero needs a compelling narrative to capture the audience’s imagination.
Who is your startups hero?
Remember your customer is the hero, but without a well-crafted brand story, it’s like a protagonist wandering aimlessly without a plot.
Besides, a strong brand story makes your product relatable, memorable, and desirable.
Please, I ask you, don’t just list features. Instead, connect emotionally with your prospects. Believe me, when people see themselves in your brand story, they’re more likely to become loyal customers.
Remember, marketing is not an afterthought—it’s integral to your product or service’s success. It’s about creating a dialogue with your audience, engaging them with a story that resonates on a personal level. Don’t just tell them what your product does; show them how it can change their world.
By weaving a compelling brand story, you ensure that your product doesn’t just sit on the shelves—it flies off them.
So, the next time you’re engrossed in perfecting your product, take a step back and think about the story you’re going to tell. Make it powerful, make it relatable, and watch as your audience not only listens but also becomes part of the journey.
Final thoughts
While these issues seem obvious in retrospect, they are frequently difficult to solve in practice. While there are many reasons why companies fail, marketing plays a major role in many of them.
Failure can occur when crucial brand values, stories, and research are overlooked. However, these can be fixed.
Nonetheless, the startup world still supports innovation, so if you have a lot of willpower and preparation, it is totally possible for your product or service to revolutionize the market.
Do you want to start your own startup but need assistance developing your story and brand? I am able to help! Please get in contact with me for a free discovery call.
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