Skip to main content

5 top reasons why products and companies fail


We love success stories. We love to hear them, see them and picture ourselves in them. Yet when we think about the real life we know there are much more stories of failures than success. But we don't talk about them. We don't like them. Although stories about failures may tell us much more than "...and they lived happily forever after".



The guys in CB Insights collected an impressive list of startup postmortems. All the reasons mentioned there are well applicable to products.

After reading all of them (yep, read them all) I noted to myself the following top 5 reasons why products and companies fail:


1. Couldn't find product-market fit

Oh, this equilibrium. So difficult to make this right. Yet without a proper fit, all other things are marginal. The right,product (features, price, delivery) for the existing, painful problem.

2. Problem was not big (painful) enough

Arguably the easiest part, yet lots of teams fail here. We don't do market research not because we don't know how - we just scared it will show that we're wrong.

3. Not enough funding 

Not only money but C-level support or dev resources. Lean is great. Agile is king. Sometimes products need just a bit more money, time, people.

4. Team was not able to deliver

This includes founders, CEOs, PMs. Team - product fit is vital.

5. Not agile enough 

Was unable to pivot, adapt when needed. Darwin said it all - the most adaptable wins. Yet many times we just cannot let go. We drag and drag idea until it kills our team and future prospects.

I'd like to thank sincerely all founders who were brave to write those postmortems. It's hard to admit your own failure. Still - "sometimes you win, all times you learn" and you learn even more from failures.

Comments

Popular posts from this blog

Fogg Behavior Model

Have you ever wondered why you do certain things? Why are some behaviors easy and joy to do while other not so? And your customers - have you ever struggled to understand their behavior?
BJ Fogg, from Stanford University, has created simple and powerful behavioral model for persuasive product design.


Product Vision: an elevator pitch for your product

On this blog, I write a lot about making data-driven decisions. But what if you just starting to think about your product? You have a vague idea and nothing more. No point to go for prototyping or even talking to customers as you don't know yet who to talk to and what to talk about. In such situation - start from creating a product vision.

2017: Less of How, more of What, and a little bit of Why

Focusing less on how (methodologies, frameworks, processes). For me, that was the most important product management trend in 2017. Surely, "Agile" talks are bottomless. Yet, I noticed a certain tiredness and dare I say, boredom among product community with regards to this topic.
- Maybe that's enough? Haven't we discussed that like thousand times? Shouldn't we all have that figured by now?