The Brutal Truth About Why Startups Fail (And How to Beat the Odds)
How do you think, how many startups are actually successful? Try to guess…
Statistics say that around 90% of startups fail, with 70% failing within the first 5 years. The major reason (over 35%) is that there is no market need for the product.
Countless startups invest years into building products that actually have little market demand or no market demand at all.
Founders often assume that having a great idea and executing it or adding more features will guarantee success.
Let me assure you: this rarely happens. Here comes a common pattern for failed startups:
Get excited about an idea → spend months building it → launch to complete silence → become discouraged → repeat the cycle.
There is a recipe to overcome this cycle. It is both easy and difficult at the same time: successful founders always prioritize market validation over prolonged development cycles.
Market validation: What works and what doesn’t
Based on my experience, I have collected a few cases that work, and some that won´t help you develop your product.
What works:
Finding people already searching for a solution
Instead of sending cold messages (which can work in some cases), successful founders actively look for potential customers who are frustrated with existing solutions or are searching for possible solutions.
Searching for discussions like “Does anyone know a tool that…” or “I’m frustrated with [competitor]” provides opportunities to find real users genuinely seeking alternatives.
Trying to help, not to sell
You should offer real value to your customers if you want to reach out to them successfully.
To increase trust, you should provide a solution to their pain point or at least answer their questions before even mentioning your product.
What doesn’t work:
Classical cold outreach - people will ignore your emails about a “new revolutionary platform.”
Waiting for SEO to do its job. SEO is a powerful tool, but it takes months or years to provide effective results.
Building an all-in-one solution. Early versions of the product or even product MVPs that are overloaded with unnecessary features often confuse users rather than attract them.
Note: while traditional cold outreach (mass emails and generic pitches) rarely works, warm outreach can be highly effective when done right.
Personalized emails or LinkedIn messages that reference a specific challenge the recipient is facing, or a mutual connection, can open doors. Instead of pushing a product, focus on starting a conversation and providing value upfront.
The "ready-to-buy" framework
Here are three simple scenarios when users will want to buy your product:
Actively searching for a solution
This is the best-case scenario that may happen in real life. People have countless issues that they want to deal with. All you need is to listen to them, understand if the problem is real, and offer your solution.
Where to find them:
Search for discussions on Reddit, Twitter/X, Quora, Indie Hackers, Slack, and LinkedIn groups where users ask, “Does anyone know a tool that…?”
Monitor Q&A sites like Stack Overflow or Product Hunt for questions about your niche.
Use advanced Google search operators (e.g.,
“best [your niche] tool” site:reddit.com).
How to engage them:
Offer value first—provide insights or recommendations before mentioning your product.
Ask follow-up questions to better understand their needs.
Share free resources, templates, or quick solutions that build trust before suggesting your product.
Frustrated with existing options
This is another excellent scenario: offering a similar product, but cheaper or better.
Where to find frustration signals:
Read negative reviews on platforms like G2, Capterra, Trustpilot, and App Store/Google Play. Look for repeated complaints (e.g., slow performance, bad UI, poor support).
Follow social media discussions where people complain about competitors. Search Twitter/X for phrases like “I hate [competitor name]” or “[competitor] is too expensive”.
Analyze support forums or comment sections where users request missing features.
How to position your product:
Don’t just say you’re better—show exactly how you solve the frustrations users have with competitors.
Run targeted ads that highlight weaknesses in competitors (e.g., “Struggling with [competitor’s common issue]? Try this instead.”).
Reach out to frustrated users directly with a free trial or demo addressing their pain points.
Asking for product recommendations
These users are already in a buying mindset. Converting for such people is five to ten times higher than for cold leads.
Where to find them:
Monitor Reddit threads, Facebook groups, LinkedIn posts, and Slack communities where people ask for recommendations.
Engage in product comparison discussions (e.g., “What’s better: X or Y?”) and position your product effectively.
Keep an eye on newsletter comments, Twitter threads, and niche forums where professionals ask for tools in your domain.
How to increase conversions:
Create comparison content (e.g., “How [your product] compares to [competitor]”) and share it when relevant.
Encourage happy users to recommend your product by building a referral program (e.g., discounts, exclusive features).
Offer a clear, compelling reason to choose your product—whether it's better pricing, stronger features, or a unique approach.
By focusing on users who are already primed to buy, you significantly increase your chances of success while reducing wasted efforts on cold outreach.
Real-world examples of successful validation
Zappos – testing the market before scaling
Zappos is an online retailer known primarily for selling shoes, clothing, and accessories. Instead of investing heavily in inventory, Zappos’ founder Nick Swinmurn tested the market demand by photographing shoes in local stores and listing them online.
When customers made a purchase, he simply bought the shoes from the store and shipped them. This allowed Zappos to validate the online shoe market before committing significant resources.
Superhuman – Targeting early adopters
Superhuman, a premium email client, didn’t aim to attract all users at once. Instead, the company focused on a niche audience - power users who were frustrated with existing email solutions.
The team conducted multiple user interviews to identify real pain points with Gmail and Outlook and later designed a product addressing those specific issues.
Basecamp – Focusing on essential features
Basecamp is a project management and team collaboration software for more efficient team collaboration.
It succeeded by solving a specific pain point - project management for small teams. Instead of adding every possible feature, they concentrated on the most critical ones, ensuring a simple and effective user experience.
The market was already crowded, but they stood out by eliminating unnecessary complexity from the product.
Key lessons for startup founders
I have gathered these valuable insights while working with successful and failed startups during the last 10 years:
Start with a product MVP to do one thing well, focusing on core functionality only.
Build your product around a specific pain point. You should solve a clearly defined problem.
Choose technologies within your expertise that speed up development instead of searching for fancy tools.
Engage with potential users directly instead of waiting for organic traffic.
Charge from day one. Monetization should be part of the plan from the start, not an afterthought. If users aren’t willing to pay, your product might not be solving a real problem.
Following these principles, as a startup founder, you can avoid common pitfalls and increase your chances of building products that people actually want.