Why do so many startups fail?

The same path lies between every startup and their ultimate idea of success. Think of it like a tunnel filled with monsters. Every startup must defeat the same monsters in order to survive.

The best weapon to fight these monsters is determination, which can be broken into two parts: resilience and drive. These qualities are essential for handling the doubt and rejection that every startup faces.

Improvising is especially important when navigating the variety of problems that will arise. Whether it’s something specific (like a lawsuit) or vague (like no customers), your ability to problem-solve will require enormous initiative.

Another monster to overcome is friction between co-founders. These foundational relationships are crucial. Be on the lookout for red flags (like trust issues) as this sort of dysfunction often has a devastating effect on startups.

A common stumbling block to success is handling investors. Usually, they won’t take an interest unless other investors have taken an interest – and even then, they’ll drag their feet. What they will respond to is a sense of competition, so you need to create some.

Fundraising is so difficult that it can become a terrible distraction for any startup. Try to keep things simple by focusing on building something with traction and communicating with your users.

The next monster to come along is acquisition. It can be exciting when a big company shows interest in what you’re doing, but this is another dangerous distraction. Entertaining the idea of being acquired can harm your ambitions, and getting a low-ball offer will feel crushing.

The hardest monster to face is simply making something that people actually want. Most startups die at this point because being smart and determined just isn’t enough. Even if your idea is great, it will inevitably take a series of adjustments until it clicks with an audience.

Running a startup is like riding a rollercoaster, so remember that the highs and lows never last. Sure, the pressure during hard times can kill off a venture – but so can the complacency that creeps in when everything looks good. Develop a thick skin and stay grounded.

Everyone understands that startups are difficult, but very few realize just how hard things can be. Even the brightest entrepreneurs get demoralized. The key to persevering is knowing – from the start – what monsters you will face and just how powerful they can be.