Everyone has a brilliant idea, a great solution that is going to change the world for good. Even so, 90% of startups end up failing! 60% of them do not even make it out of their first 3 years.
Companies can fail for a variety of reasons, some of which they can control and some of which they can’t. There is one very clear reason that a startup will go under. There is no market need for their services. 42% of startups that fail, do so because they are solving a problem that doesn’t really exist and so nobody wants their solution.
I think its something we’ve all been very guilty of. We come up with a great idea and a really unique solution. We get so excited about seeing the problem through a completely different light and we see what we think is massive potential….but then nobody else cares and those that do care, don’t care enough to pay for it.
The really simple solution to this, is to listen to your customers. Seek out their feedback – their criticism and always strive to iterate and improve. Stay agile – enough to reflect what they are asking from you and drop things that aren’t working.
The situation will often be far more nuanced than this and there are companies with great solutions, that solved real issues and have failed. Equally there are some that serve far less of a purpose and have flourished. As a guiding principle, you can never go too far wrong by listening to your customers, meeting and then exceeding their expectations.