{"id":9036,"date":"2017-10-30T16:02:36","date_gmt":"2017-10-30T15:02:36","guid":{"rendered":"https:\/\/www.mickyweis.com\/8-grunde-til-dit-online-projekt-vil-gaa-i-vasken\/"},"modified":"2025-07-18T16:40:58","modified_gmt":"2025-07-18T14:40:58","slug":"why-startups-fail","status":"publish","type":"post","link":"https:\/\/www.mickyweis.com\/en\/why-startups-fail\/","title":{"rendered":"8 reasons people never launch their startup"},"content":{"rendered":"<p>Over the past 8 years, I&#8217;ve been involved with over 100 different companies, covering everything from start-ups and medium-sized enterprises to the major players.<\/p>\n<p>As a result, I\u2019ve gained substantial experience and insight into what works \u2013 and what doesn\u2019t. In other words, I\u2019ve developed a clearer understanding of why some companies fail while others achieve massive success.<\/p>\n<p>I&#8217;ve long wanted to share these experiences with you, because I believe this knowledge is truly valuable. When you know what not to do, you can often stay focused on what builds a better business.<\/p>\n<p>Here are my 8 reasons why online business projects (with a high degree of probability) go down the drain.<\/p>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 ez-toc-wrap-left counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Jump to section<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #000000;color:#000000\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #000000;color:#000000\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.mickyweis.com\/en\/why-startups-fail\/#1_The_team_is_poorly_assembled\" >1. The team is poorly assembled<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.mickyweis.com\/en\/why-startups-fail\/#2_They_live_in_a_dream_world\" >2. They live in a dream world<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.mickyweis.com\/en\/why-startups-fail\/#3_They_dont_invest_enough_in_data_and_analytics\" >3. They don\u2019t invest enough in data and analytics<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.mickyweis.com\/en\/why-startups-fail\/#4_They_fail_to_retain_their_customers\" >4. They fail to retain their customers<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.mickyweis.com\/en\/why-startups-fail\/#5_They_dont_experiment_or_AB_test\" >5. They don\u2019t experiment or A\/B test<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.mickyweis.com\/en\/why-startups-fail\/#6_They_struggle_with_change_and_adaptation\" >6. They struggle with change and adaptation<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/www.mickyweis.com\/en\/why-startups-fail\/#7_They_dont_learn_from_their_mistakes\" >7. They don\u2019t learn from their mistakes<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/www.mickyweis.com\/en\/why-startups-fail\/#8_The_competition_is_massive\" >8. The competition is massive<\/a><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"1_The_team_is_poorly_assembled\"><\/span>1. T<strong>he team is poorly assembled<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>When reading various <a href=\"https:\/\/bothsidesofthetable.com\/the-first-vc-meeting-post-1-of-many-a74bc6823a18\">investment interviews<\/a>, the most important factor for investors is a strong team.<\/p>\n<p>Unfortunately, I often see companies that haven\u2019t given enough thought to how to structure their teams efficiently. When launching a business from scratch, it\u2019s common to start with 2\u20133 friends you want to work with \u2013 and that\u2019s fine. You might hire friends or acquaintances because they\u2019re similar to you, and you know where you stand with them.<\/p>\n<p>\u2026But we also have to acknowledge that an effective team is composed of people with diverse skill sets, so hiring those who resemble yourself isn\u2019t always enough.<\/p>\n<p>In online marketing especially, it\u2019s vital to consider the skills within your team because you\u2019ll be touching on areas like programming, marketing, product development, finance\/accounting, and customer service.<\/p>\n<p>It\u2019s equally important to leverage the skills available on your team. One person can cover multiple areas early on, and by default, everyone is part of the sales team because the main focus is selling.<\/p>\n<p>Most webshops I consult today were started because the founders had a product they wanted to sell.<\/p>\n<p><a href=\"https:\/\/www.mickyweis.com\/en\/start-ecommerce-business\/\">They launched a webshop<\/a>, uploaded the products, and then\u2026 nothing happened \u2013 which quickly leads to frustration.<\/p>\n<p><strong>#1: Define responsibilities clearly. It\u2019s often much better to have 2\u20133 partners than to pay for external help from the beginning.<\/strong><\/p>\n<h2><span class=\"ez-toc-section\" id=\"2_They_live_in_a_dream_world\"><\/span>2. T<strong>hey live in a dream world<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>This point builds on the previous one. Many still believe that you can &#8220;just launch something on the internet&#8221; and it\u2019ll sell by itself \u2013 as they\u2019d say in Jutland.<\/p>\n<p>Sadly, the world doesn\u2019t work that way. The product you\u2019re selling and <em>how<\/em> you market it are more important than your webshop. But remember: if no one on your team understands online marketing and disciplines such as:<\/p>\n<ul>\n<li>Facebook advertising<\/li>\n<li>Big data and web analytics (arguably the most important)<\/li>\n<li>Google Ads<\/li>\n<li>SEO<\/li>\n<li>Email marketing<\/li>\n<\/ul>\n<p>\u2026then how will you generate traffic to your website? Most people think traffic comes from simply having a website. It doesn\u2019t \u2013 so be realistic.<\/p>\n<p>It often takes 1\u20132 years before your webshop reaches break-even \u2013 when you&#8217;re no longer losing money monthly.<\/p>\n<p><strong>#2: Be realistic and develop a marketing budget to support market entry. If no one on your team is willing to dive into the digital jungle, you\u2019ll need to set aside money for a consultant \u2013 which can come back to bite you later (more on that in point 7).<\/strong><\/p>\n<h2><span class=\"ez-toc-section\" id=\"3_They_dont_invest_enough_in_data_and_analytics\"><\/span>3. T<strong>hey don\u2019t invest enough in data and analytics<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Everything can be tracked today \u2013 you get massive amounts of data no matter your field. This data should be used to improve your product and marketing strategy.<\/p>\n<p>You either need to invest in your team\u2019s skills and <a href=\"https:\/\/www.mickyweis.com\/en\/marketing-tools\/\">tools<\/a> \u2013 or do it yourself. You can\u2019t lean back just because you work with branding, because data plays a huge role in everything happening online \u2013 trust me.<\/p>\n<p>Whatever you\u2019re doing online, it can be tracked \u2013 and user behavior tells you everything about your product&#8217;s quality and provides insight into the future.<\/p>\n<p>Most companies spend their marketing budget without looking at data. That\u2019s like buying a car without test driving it. The best thing about having a strong overview of your data is not just getting sharper in business \u2013 it also makes it easier to attract investors or venture capital.<\/p>\n<p>If you\u2019ve seen <em>Dragons&#8217; Den<\/em>, <em>Shark Tank<\/em>, or <em>L\u00f8vens Hule<\/em>, you might have an idea of the numbers they expect you to know.<\/p>\n<p><a href=\"https:\/\/www.yumpu.com\/en\/document\/view\/53351263\/20-most-important-startup-metrics-cheat-sheet\"><strong>FREE PDF with the 20 numbers investors want from you<\/strong><\/a><\/p>\n<h2><span class=\"ez-toc-section\" id=\"4_They_fail_to_retain_their_customers\"><\/span>4. T<strong>hey fail to retain their customers<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Most companies are so eager to gain new customers that they completely forget the ones they already have.<\/p>\n<p>Once you\u2019ve sold a product to one customer, how do you ensure that person returns?<\/p>\n<p>In the online world, we use the term <em>retention<\/em> \u2013 the ability to keep a customer.<\/p>\n<p>Three factors determine whether you can retain a customer:<\/p>\n<ul>\n<li>Experience<\/li>\n<li>Product<\/li>\n<li>Need<\/li>\n<\/ul>\n<p><strong>Experience<\/strong><br \/>\nDid you provide the best possible experience through your website \u2013 or was it mediocre? Why should the customer recommend your product or service?<\/p>\n<p><strong>Product<\/strong><br \/>\nIs the product as good as you think it is? The quality of the product directly affects how many new customers you gain from a paying one.<\/p>\n<p>Example:<br \/>\nI own a jacket from the English brand <a href=\"https:\/\/www.bodaskins.com\/da_dk\/\">Bodaskins<\/a>. They only make leather jackets (so far), but they are <em>fully<\/em> committed to their audience. Jackets range from 4,000 to 6,000 DKK, but they\u2019re so reliant on positive word-of-mouth that they go out of their way to deliver top-notch customer experiences. Their website and marketing are unique. They respond to everyone tagging them on Instagram and give thoughtful replies on <strong>Trustpilot<\/strong>, where they address reviews in depth.<\/p>\n<p><strong>Need<\/strong><br \/>\nWhy do people switch products? If you sell Rolex watches, customers won\u2019t come back soon due to the high price. But if you sell supplements, personal care, or frequently used items, there\u2019s massive potential because demand is continuous.<\/p>\n<p>Let\u2019s say you get 1,000 customers a month. Only 5% return. You know acquiring new customers via marketing is expensive. If the average order is 500 DKK, your monthly revenue is 500,000 DKK. But since 95% are new customers, you\u2019ve spent a lot acquiring them \u2013 maybe 350 DKK each.<\/p>\n<p>Meanwhile, it only costs you 10 DKK to bring back an existing customer (through brand, email list, or similar).<\/p>\n<p>We can agree it makes more sense to increase your 5% retention rate to 20%, rather than raise the budget to buy more customers at 350 DKK each, right?<\/p>\n<p>These calculations are pure gold for any online business \u2013 whether you&#8217;re in e-commerce, software, or apps.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"5_They_dont_experiment_or_AB_test\"><\/span>5. T<strong>hey don\u2019t experiment or A\/B test<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Another huge mistake. Most decisions are still made based on gut feelings \u2013 but why not let data show what works?<\/p>\n<p>Sure, Steve Jobs said: <em>people don&#8217;t know what they want before we give it to them.<\/em><\/p>\n<p>But online, the reality is different \u2013 because data reveals what people want even before <em>you<\/em> know it. (And let\u2019s be honest \u2013 we\u2019re not all Steve Jobs.)<\/p>\n<p><strong>Trick 1: <a href=\"https:\/\/www.mickyweis.com\/en\/a-b-testing\/\">A\/B testing<\/a><\/strong><br \/>\nUse tools like VWO to track what your visitors prefer. Do they like a homepage video? Do they click the green or yellow button more on product pages? Let the data guide you. ASOS.com constantly tests their layout to see what performs best \u2013 the site might look different tomorrow.<\/p>\n<p>Even a small improvement in your conversion rate (the % of visitors who buy) can result in a significant sales boost.<\/p>\n<p><strong>Trick 2: Call your customers<\/strong><br \/>\nIt amazes me that more people don\u2019t do this. Call both satisfied and dissatisfied customers, and soak up knowledge. Take notes and get smarter.<\/p>\n<p>If 80% of the customers you talk to say your product smells terrible (pardon the language), there might be truth to it. But if people complain about late delivery from the postal service, that\u2019s likely an external issue.<\/p>\n<p><strong>#Tip 5: Don\u2019t experiment unless you\u2019ve set up a system to measure the results. It makes no sense to test if you can\u2019t track performance \u2013 especially not if you\u2019re redesigning your homepage or website from scratch.<\/strong><\/p>\n<h2><span class=\"ez-toc-section\" id=\"6_They_struggle_with_change_and_adaptation\"><\/span>6. T<strong>hey struggle with change and adaptation<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Many of us think: <em>my product is great \u2013 the user is the problem<\/em>. That might be your opinion, but it won\u2019t help your sales \u2013 quite the opposite.<\/p>\n<p>All companies in your market are competing with you \u2013 and the competition is only increasing.<\/p>\n<p>When Amazon enters your market, don\u2019t throw up your hands and say \u201cDamn Amazon, they\u2019re killing my business.\u201d That attitude won\u2019t help you.<\/p>\n<p>As I have mentioned, it\u2019s not about what happens in your life or business \u2013 but how you react to it.<\/p>\n<p><a href=\"https:\/\/www.mickyweis.com\/en\/amazon-marketing\/\">Maybe you <em>could<\/em> use Amazon\u2019s platform<\/a> to sell your products? Focus on opportunities, not limitations.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"7_They_dont_learn_from_their_mistakes\"><\/span>7. T<strong>hey don\u2019t learn from their mistakes<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>This relates to earlier points: Many companies simply don\u2019t learn from their mistakes. In other words, they don\u2019t \u201csharpen the saw,\u201d as Stephen Covey writes in his best-selling book <em>The 7 Habits of Highly Effective People<\/em> (highly recommended).<\/p>\n<p>If you hire consultants to build your online strategy, you\u2019re not learning anything. Same goes if you outsource production.<\/p>\n<p>There\u2019s nothing wrong with delegating work \u2013 but the downside is you don\u2019t gain the insight. If you don\u2019t understand what caused your success, or how your mistakes affected the company, how can you repeat \u2013 or avoid repeating \u2013 them?<\/p>\n<h2><span class=\"ez-toc-section\" id=\"8_The_competition_is_massive\"><\/span>8. T<strong>he competition is massive<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><a href=\"http:\/\/andrewchen.co\/growth-is-getting-hard\/\">Andrew Chen<\/a>, Growth Hacker at Uber among others, wrote a post about increasing online competition.<\/p>\n<p>The problem is, newcomers still think they\u2019re first movers \u2013 but they\u2019re not.<\/p>\n<p>It\u2019s like thinking you\u2019re starting in pole position in Formula 1, only to realize you\u2019re starting 40th or 50th. How do you react to that?<\/p>\n<p>It\u2019s fine to realize you\u2019re not a rock star \u2013 even if you thought you were. The key question is: <em>how do you respond<\/em>?<\/p>\n<p>So: the big conclusion is that success won\u2019t come easy. But if you can do it \u2013 and work hard for it \u2013 it <em>is<\/em> possible.<br \/>\nAre you ready to take up the challenge?<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Over the past 8 years, I&#8217;ve been involved with over 100 different companies, covering everything from start-ups and medium-sized enterprises to the major players. As [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":5383,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[108,79],"series":[],"class_list":["post-9036","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-marketing","category-online-marketing"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.5 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>8 reasons why most startups never get off the ground<\/title>\n<meta name=\"description\" content=\"Why do some fail while others succeed? 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