What are the risks for startup?

Updated: 6 days ago

There are the following major uncertainties.

  1. would target audience be found and accessed?

  2. would target audience accept your value and pay?

  3. can you make profit under the current market condition?

  4. can your business, vision, pay compensation and message draw talents?

  5. could you withstand copycat attacks/


Many companies started and last for a few yeas and die. There are two main reasons:

  1. They never found business and their value proposition never found buyer.

  2. They can not grow beyond one person's hobby.

Serial entrepreneurs knows that a solo company is going to struggle.

  • it is better to have a solo effort than bad company.

  • a dream of one person is a dream, a dream of two is reality.



A company without business is very common. When startup, make sure you have business, then form a company to conduct the business.

The Value proposition canvas


The Business model canvass




Other links to articles about startup failures and how to "embrace" them.


Real cases of startup failures

https://www.sevenparallel.com/post/close-encounters-with-friends-startup-failures-teaches

Top reasons beginners fail

https://www.sevenparallel.com/post/top-reasons-beginners-fail

For startup, the first failure is mandatory and it is the success!

https://www.sevenparallel.com/post/why-startup-is-called-fail-forward-is-it-really-that-hard

Why companies start for 3-4 years before they fail?

https://www.sevenparallel.com/post/why-startups-fail-after-receiving-funding-and-have-products-sale

Top 10 Indian startups that closed in 2019

https://www.sevenparallel.com/post/top-10-indian-startups-that-failed-in-2019

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