As a startup founder and the owner of three businesses, I know all about failure. I’ve made my fair share of making really dumb mistakes throughout my career, especially in the early years; however, I’ve also been fortunate enough to learn from those mistakes and never to make them again.

And so, I’m going to share my insight on why only one out of every ten startups will succeed and make it see its second and third birthdays.

1). Strong Market Research and Target Audience Definition – The founders and business owners who have conducted the proper market research are more likely to have startups that succeed because they made sure there’s a demand for their product or service. They don’t spend weeks or months trying to guess what their market(s) want.

2). Product or Service Differentiation – Founders and businesses owners who have a product or service that’s different from the rest of the competition (it’s unique, better, or innovative), have a pretty good chance that it’ll sell, which means their businesses will probably be successful.  

3). Business and Marketing Planning – Smart founders and business owners plan each stage of their businesses. They have short-term and long-term plans including measurable goals and results. Without a plan, a business is more likely to fail.

4). Strong Leadership – Businesses with strong managers and founders do better because employees feel appreciated and, therefore motivated to perform better.

5). Scaling at the Right Time – Many business owners fail because they scale their businesses too quickly by hiring too many employees or spending too much money on marketing in the beginning. However, business owners and founders that control their growth are the ones that win.

6). Knowing the Numbers and Showing Profitability – Business owners and founders who know their numbers and show profitability are more successful than business owners who don’t a sense of their customer acquisition costs and the lifetime value of their customers. They also understand the differences between revenue and profit as well as know-how to read financial statements.

7). Clear Core Values – Businesses with clear core values and communicate them through marketing are more often successful than businesses that don’t have them. Core values oftentimes include honesty, transparency, integrity, quality, respect, among many others.

8). Business Owners/Founders are Accountable – Successful business owners and founders hold themselves accountable for their actions and write down their goals to make sure they stay on track.

9). Business Owners/Founders are Action Takers – Successful business owners and founders plan and then take action. They don’t let procrastination or perfectionism get in the way of launching a new product or service or growing their ventures.

10). No Self-Care – When an entrepreneur doesn’t take care of themselves everything else suffers. Working too much, not exercising, and eating poorly all result in bad performance. So making themselves a priority is critical to performing well.

Author(s)

  • Kristin Marquet

    Kristin Marquet is a founder and creative director of Marquet Media, LLC

    Marquet Media, LLC

    Kristin launched the emerging spinoff media company, FemFounder.co that helps creative female entrepreneurs plan, launch, and scale their businesses. FemFounder is a one-stop resource for everything on entrepreneurship, digital marketing, PR, and social media marketing. Now, Kristin runs Marquet-Media.com, a boutique creative consultancy that designs beautiful and feminine brands in the wedding, beauty and fashion, wellness and fitness, cooking, photography, and interior design industries. She also runs the luxury sustainable living magazine, TheGivingEarth.com.

    Passionate about learning, Kristin has advanced studies in data and marketing analytics. She has attended MIT, Boston University, and New York University and holds degrees in literature and marketing/public relations. She has contributed to Forbes.com, Inc.com, HuffingtonPost.com, Entrepreneur.com, and NYDailyNews.com.

    In 2015, she also authored the book, Squash the competition and Dominate your marketplace: 55 easy Tips to Generate Big Publicity for your startup or small business and in 2018 cowrote the Amazon bestseller, Publicity Jumpstart: 10 Ways to Get Your Brand in the Press. She is also the author of the upcoming book, From Nameless to Notable: How to Gain Influence, Establish Authority, and Reach Expert Status in Your Niche or Industry The Ultimate Guide to Generating Media Coverage for Your Startup and Leveraging It to Increase Website Traffic, Email Subscribers, and Sales. Most recently, she joined the Young Entrepreneur Council.

    Kristin is an endurance runner and lives in Westchester County, New York with her husband, Michael.