5 Reasons Why Most SaaS Startups Fail
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- Опубликовано: 21 окт 2024
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How do you avoid becoming a startup failure when the odds are stacked against you right from the start? In this video, I’m going to share with you the 5 biggest reasons why most startups fail.
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SaaS Products only fail for 5 main reasons... if you know what they are, then you’ll be able to monitor and mitigate the risk. Watch this video to learn how to avoid the startup kiss of death.
1) No validation, hence no product/market fit
2) Numbers not well thought
3) Poor management (like all the other four is not related to poor management :D)
4) Run out of cash
5) Product problems (technical).
So just the usuals.
When you spoke about poor management and co-CEO's just not working, what came to mind was a great book E-Myth, think that's a must read for entrepreneurs. Thanks Dan, have a great week.
It's a must / changed my life.
Talked about it here (day after I had dinner w/ Michael Gerber the author)
facebook.com/Danmartell/videos/1955495424680286/
DM
Dan, that's one book I wish was bigger, lol, awesome practical framework in every page; Thanks for the FB share, good summary. You are so right, you never know how things will turn out, just live your truth and life somehow sends opportunities your way, I'm sure you had a great dinner with Michael Gerber :). Cheers
My Highlights: 5 Reasons Why Most SaaS Startups Fail
1. Market Problems = Find the market first, then develop the solution. Validate by talking to early adopters. They may have solved the issue internally, maybe with spreadsheets, scripts, or internal tools, and they could be happy with your more elegant solution. Pleasing them will tell you how to approach and deploy into the market.
2. Business Model Failure = At the end of the day, your solution has to pay for the cost of development and deployment, while solving the customer's problems. Get the numbers right.
3. Poor Management Team = Company leaders must be on the same page. Need to know who leads and who is responsible/accountable for which areas, then empower them to be successful in those areas. Figure this one out early, make sure all the founders are on board for at least 5-7 years.
4. Running out of Cash = The issue isn't just capital, but capital management: how you deploy your capital, and in what timeline. Use constraint-based thinking to allocate resources: what are the timeline, resource, and feature-set constraints, and what could be developed within that framework, given the capital we have?
5. Product Problems = SaaS solutions are fundamentally software. Without a product management system and continuous integration deployment system, with customer support, it's tough to pay back the code debt.
Takeaways: Ignore these failure points at your peril! These are pretty straight forward mistakes, and reasonably well-known. But what if you made it a point to ask yourself about each of these failure points every six months or so? Might keep you from going too far off the rails. An ounce of prevention is worth a pound of cure.
Hey Dan, thanks for the free course. I have gone through a few ideas that fizzle out in the pre-sale stage so I am looking for the best tactics for that process. Excited to get into it!
David, appreciate the comment!
Thx.
DM
1. How does it relate to SAAS ?
2. Most startups fail even before any investments
Thanks for the great material that you put out there Dan!
:)
underated vid
Thanks Dear. How to find the best pricing model for SAAS project?
Patrick Campbell's got you covered
bowerycap.com/blog/podcasts/building-your-first-pricing-model/
Dan, what is the best strategy (or several ways) to figure out the best price of SaaS product - high enough to get the profit and attractive enough for customers to buy it?
You just do a yield pricing test and keep going up until customers push back. That’s why it’s best to start with demo’s and not put your pricing public at first.
Also, you need to consider that your product will evolve and improve so continue to revisit pricing every 6 months.
DM
Dan Martell so essentially you scam the customer?? Thats your plan?
Hey Dan I love your vids, I found your channel this week and have been making my way thought all your channel.
Question: when validating my market, should I continue to use a free landing page (launch rock) or a more custom site that can be a “clickable prototype”?
Benji, the launch page initially is anything that explains the problem you solve and allows your potential visitor to contact you so you can have a conversation.
LaunchRock page makes sense or Unbounce.
Just a one pager.
DM
Dan Martell thanks so much for the response and input.
Dan - why didn't I find you earlier!!
Raghav B you weren’t ready yet.... now that you are, here I am. Enjoy ;)
Hey Dan, I had a couple questions about an idea & how to execute it, could we possibly exchange emails & discuss the best way to go about it? I guess we can talk in the comments but id rather keep my idea private & I've tried looking for a video of yours that best suits me but haven't found it yet. Can I give you my email or vice versa?
Sorry, only way for me to answer questions are in the comments... that way everyone learns. Also, my thoughts on keeping ideas secret :) ruclips.net/video/uoFmhdbHGnU/видео.html
All the best.
DM
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