Observation, thoughts, and information.

Don’t Scale & Fail


Building a successful business is every entrepreneur’s goal – but only 1 in 12 succeed.  Why do startups fail?  The Startup Genome project analyzed data from 3,200 companies and came up with some answers.

At the core of any successful business are two things: a good product and a large market for that product.  In other words, a startup should be able to scale.  And to scale properly, it must balance the growth of five core dimensions:

  1. customers
  2. product
  3. team
  4. business model
  5. funding

There are numerous reasons why a startup fails — incompetency, macroeconomic issues like a recession or even legal restrictions.  But, the dominant reason for failure is premature scaling of one or more of the dimensions listed above.

The Startup Genome pulled together the infographic below, showing the various stages of startup growth.  Every startup scales at a different rate.  Being mindful how each component of your business works together, thus scales together, this will allow you to balance the growth of the core dimensions.