90% of Startups that Fail: Here’s How to Avoid That Fate

What I Wish We Had Known Before We Launched Our Startup

In a recent post-mortem of failed startups by data marketing firm, Fractl, the founders cited a poor business model as the top reason they failed. CB Insights listed “No Market Need” as the top reason 90% of startups fail. These pitfalls also apply to large companies wanting to rejuvenate themselves by attracting new audiences for their products and services.

Design-thinking, which is a way of problem solving and empathizing with customers…more than design (as the name implies)… helps innovators avoid costly mistakes AND create wanted products and services.  This methodology is behind The Business Model Canvas, a genius concept created by Alex Osterwalder, who offers all sorts of insights at his website, Strategyzer. The Canvas is a tool innovators can use to test out ideas and assumptions quickly. Here’s a video explaining the concept:

Probably the most important idea behind the Business Model Canvas is how to test out your value proposition.  The only way to do that is to talk to your customers. We’ll write more on that in an upcoming post.

Next: How to Innovate when decisions are made by consensus.

Helen WhelanHelen Whelan is a serial entrepreneur and consultant. She has 15+ years experience creating strategic partnerships and designing new business ventures. Her passion is in assisting start-ups and established companies innovate successfully through design-thinking and good leadership. Follow her blog at SuccessMedia or on Twitter @SuccessTV.

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