The deck provides quick preview of what have been the underlying causes of startup failures and what can one possibly do to reduce the probability.

1. IMPROVING THE SUCCESS OF
STARTUP'S OR NEW PRODUCT
LAUNCHES
By,
Ashis Lamba

2. What are the statistics saying?
 10-15% of all start-up businesses succeed
 15-20% of all venture-backed start-ups succeed
 25-35% of new products from existing companies succeed
So what causes this?
Technology, Accounting, Manufacturing, Operations….
 Why is the success rate so low?
 What is the root cause?
 Is there a solution available?

3. The least we can do is reduce the probability of failure.
But how?
First, lets see the top 20 causes for a startup or new
product launch to fail

4. https://www.cbinsights.com
Top 20 reasons for
Startup failures

5. Other Probable Reasons-
 Premature Scaling
 Raising little or more funds
 Embarrassed to talk about failures and not getting your hands dirty
 Getting acquired or the founders moving on to new projects.
 Retreating to a cave. Markets are conversations and Dialogue is key
 Incompetence or Lack of Experience in Management or line of goods
 Caving into Investors
 First mover fallacy – launching too early or even too slowly
 Choosing the wrong platform and being rigid

6. So, can we really skip or avoid these issues?
These are part and parcel of the journey of making
a startup or a new product launch successful.
Hence what are the options available?

7. Market Validation
READY AIM FIRE
 Domain knowledge
 Market size
 Growth rate
 Lifecycles and trends
 Competitive analysis
 Outside data sources
 Primary market research
 Who to interview
 Interpreting the data
 Analyzing the results
 Using outside firms
 Getting the market
ready for your product
 Market Orientation
 Product specifications
and schedules
 Design Partner
Programs, Advisory
Board Programs
 Launch
 Sustained sales

8.  Porter 5-Forces Model – Flank the Industry (Micro-Environmental Analysis)
 PESTLE (Macro-Environmental Analysis)
 SWOT (Strength, Weakness, Opportunity & Threat)
 RBV (Resource Based View) as basis for Competitive Advantage
Switch to Lean Startup Framework –
 Business Model Canvas
 Customer Development
 Agile Development
Strategic Analysis

9. SOURCE:
WWW.BUSINESSMODELGENERATION.COM/CANVAS

10. What More Can We Do?
 Focus on Customer Acquisition Cost (CAC) and Life Time Value (LTV)
 Have a Minimum Viable Product
 Using Net Promoter Score
 Good skilled hiring and Leadership practices
 Financial Management
 Non-Traditional Marketing Techniques
 Be ready for Changes and Pivoting
 Have a Web Interface
 Beta and Concept Testing
 Understand Diffusion of Innovation
 Know the Growth Phase
 Share Best Practices

11.  Startup Ecosystem
 Using 5 –Why Technique
 Pragmatic Marketing (Another Framework)
 Use Data Analytics, Crowdsourcing, Text Mining and
Sentimental Analysis to get a real hold of customer
sentiments about your product
Some New Initiatives

12. Eg. Pragmatic Marketing Framework

13. Conclusion
It is all about Risk Management and one needs to use the
available frameworks and techniques effectively and innovatively
as per the situation and hedge its risk of product or startup failure
Using the frameworks and suggestion do not guarantee a sure
shot success but it does reduces the probability of failure, after all
-
‘FAILURES ARE STEPPING STONES TO SUCCESS’

14. References
 http://www.wsj.com/articles/SB10000872396390443720204578004980476429190
 http://www.forbes.com/sites/ericwagner/2013/09/12/five-reasons-8-out-of-10-businesses-fail/
 http://www.statisticbrain.com/startup-failure-by-industry/
 http://www.pragmaticmarketing.com/about-us/framework
 https://hbr.org/2013/05/why-the-lean-start-up-changes-everything
 http://www.isixsigma.com/tools-templates/cause-effect/determine-root-cause-5-whys/
 http://www.entrepreneur.com/article/76364
 http://theleanstartup.com

15. THANK YOU