The Three Biggest Reasons Why SAAS Startups Fail - Deepstash
Top 7 TED Talks On Customer Success

Learn more about startup with this collection

How to create customer-centric strategies

The importance of empathy in customer success

The impact of customer success on business growth

Top 7 TED Talks On Customer Success

Discover 42 similar ideas in

It takes just

14 mins to read

The Three Biggest Reasons Why SAAS Startups Fail

The Three Biggest Reasons Why SAAS Startups Fail

SAAS is a means by which applications are delivered over the internet, saving you from the burden of installation, management and continuous updates that comes with the traditional purchase and use of a software or application.

12

145 reads

Why SAAS Startups Fail

Why SAAS Startups Fail

  1. Lack of Market
  2. Poor Management team
  3. Product Problems

12

125 reads

1. Lack of market

1. Lack of market

Loving a business idea is not enough to make it successful and a lot of SAAS startups have had to experience the heartbreak that comes with this lesson. CBI insights report that about 42% of cloud startups stop operations due to this cause. I call it the passion trap and to avoid falling into it, you must ensure that your idea fills a market need. Successful entrepreneurs do this by;

  • Obsessively emphasizing the market
  • striving to know the market
  • Executing based on their market’s opportunity

13

69 reads

2. Poor Management team

2. Poor Management team

Visionary managers understand that for a startup to thrive, it must focus on value creation before profits.

Today’s profit-motivated entrepreneurs find it easy to gather a team of freelance developers on Upwork or Fiverr to make their product but once the product is past its concept stage they realize that a lot more time, money, patience and industry is still needed before it could be profitable. Disappointed, they abandon the project.

Hubspot was founded in 2006 at MIT, yet when CMO Mike Volpe was asked in 2010 whether or not the company was profitable, he gave a remarkable reply:

12

55 reads

HUBSPOT FORMER CMO MIKE VOLPE

‘HubSpot could be profitable if we wanted to, our current revenue run rate is in excess of $20 million. We just believe that there are tens or hundreds of thousands of businesses that we can help transform with better marketing (beyond the 3,000+ that use our product today). We want to continue to grow fast and be the leader in this market, so we are investing in even more rapid growth. There are many things that worry me, but our ability to be profitable is not one of them’

HUBSPOT FORMER CMO MIKE VOLPE

11

52 reads

3. Product Problems

3. Product Problems

Shopify remains the leading platform for drop-shipping and e-commerce hosting for entrepreneurs because it does what it says, fast and easy. Competitors who have sprouted over the years have failed because they were unable to replicate this convenience and simplicity in their products, leading to bad user experiences and ultimately business failure.

As a SAAS entrepreneur, you should ensure that your product is without bugs, lags, and security risks are mitigated to the barest minimum. Also, you should ensure that your product has the necessary quality and value needed to compete with rivals.

13

42 reads

CURATED BY

royaltouchz

Writer, artist, Accountant and a forever learner. Learning, loving, Hoping.

CURATOR'S NOTE

These ideas contain valuable advise for small business and tech startups.

Ready for the next level?

Read Like a Pro

stash-superman-illustration

Explore the World’s

Best Ideas

200,000+ ideas on pretty much any topic. Created by the smartest people around & well-organized so you can explore at will.

An Idea for Everything

Explore the biggest library of insights. And we've infused it with powerful filtering tools so you can easily find what you need.

Knowledge Library

Powerful Saving & Organizational Tools

Save ideas for later reading, for personalized stashes, or for remembering it later.

# Personal Growth

Take Your Ideas

Anywhere

Organize your ideas & listen on the go. And with Pro, there are no limits.

Listen on the go

Just press play and we take care of the words.

Never worry about spotty connections

No Internet access? No problem. Within the mobile app, all your ideas are available, even when offline.

Get Organized with Stashes

Ideas for your next work project? Quotes that inspire you? Put them in the right place so you never lose them.

Join

2 Million Stashers

4.8

5,740 Reviews

App Store

4.7

72,690 Reviews

Google Play

Sean Green

Great interesting short snippets of informative articles. Highly recommended to anyone who loves information and lacks patience.

Ashley Anthony

This app is LOADED with RELEVANT, HELPFUL, AND EDUCATIONAL material. It is creatively intellectual, yet minimal enough to not overstimulate and create a learning block. I am exceptionally impressed with this app!

Shankul Varada

Best app ever! You heard it right. This app has helped me get back on my quest to get things done while equipping myself with knowledge everyday.

samz905

Don’t look further if you love learning new things. A refreshing concept that provides quick ideas for busy thought leaders.

Jamyson Haug

Great for quick bits of information and interesting ideas around whatever topics you are interested in. Visually, it looks great as well.

Ghazala Begum

Even five minutes a day will improve your thinking. I've come across new ideas and learnt to improve existing ways to become more motivated, confident and happier.

Giovanna Scalzone

Brilliant. It feels fresh and encouraging. So many interesting pieces of information that are just enough to absorb and apply. So happy I found this.

Laetitia Berton

I have only been using it for a few days now, but I have found answers to questions I had never consciously formulated, or to problems I face everyday at work or at home. I wish I had found this earlier, highly recommended!

Read & Learn

20x Faster

without
deepstash

with
deepstash

with

deepstash

Access to 200,000+ ideas

Access to the mobile app

Unlimited idea saving & library

Unlimited history

Unlimited listening to ideas

Downloading & offline access

Personalized recommendations

FAQ

Claim Your Limited Offer

Get Deepstash Pro

Supercharge your mind with one idea per day

Enter your email and spend 1 minute every day to learn something new.

Email

I agree to receive email updates