The Three Biggest Reasons Why SAAS Startups Fail

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

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:

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.