5 Reasons Why Most SaaS Startups Fail

How do you avoid becoming a startup failure when the odds are stacked against you right from the start? In this video, I’m going to share with you the 5 biggest reasons why most startups fail.

Instagram: @danmartell
Twitter: @danmartell

[danmartell]

SaaS Products only fail for 5 main reasons... if you know what they are, then you’ll be able to monitor and mitigate the risk. Watch this video to learn how to avoid the startup kiss of death.

[andrasrevesz]

1) No validation, hence no product/market fit
2) Numbers not well thought
3) Poor management (like all the other four is not related to poor management :D)
4) Run out of cash
5) Product problems (technical).

So just the usuals.

[alexchevrier]

Thanks for the great material that you put out there Dan!

[oranecole]

When you spoke about poor management and co-CEO's just not working, what came to mind was a great book E-Myth, think that's a must read for entrepreneurs. Thanks Dan, have a great week.

[davidpoepping]

Hey Dan, thanks for the free course. I have gone through a few ideas that fizzle out in the pre-sale stage so I am looking for the best tactics for that process. Excited to get into it!

[ericjonespga]

My Highlights: 5 Reasons Why Most SaaS Startups Fail
1. Market Problems = Find the market first, then develop the solution. Validate by talking to early adopters. They may have solved the issue internally, maybe with spreadsheets, scripts, or internal tools, and they could be happy with your more elegant solution. Pleasing them will tell you how to approach and deploy into the market.
2. Business Model Failure = At the end of the day, your solution has to pay for the cost of development and deployment, while solving the customer's problems. Get the numbers right.
3. Poor Management Team = Company leaders must be on the same page. Need to know who leads and who is responsible/accountable for which areas, then empower them to be successful in those areas. Figure this one out early, make sure all the founders are on board for at least 5-7 years.
4. Running out of Cash = The issue isn't just capital, but capital management: how you deploy your capital, and in what timeline. Use constraint-based thinking to allocate resources: what are the timeline, resource, and feature-set constraints, and what could be developed within that framework, given the capital we have?
5. Product Problems = SaaS solutions are fundamentally software. Without a product management system and continuous integration deployment system, with customer support, it's tough to pay back the code debt.
Takeaways: Ignore these failure points at your peril! These are pretty straight forward mistakes, and reasonably well-known. But what if you made it a point to ask yourself about each of these failure points every six months or so? Might keep you from going too far off the rails. An ounce of prevention is worth a pound of cure.

[vrts]

Thanks Dear. How to find the best pricing model for SAAS project?

[benjaminmagnelli]

Hey Dan I love your vids, I found your channel this week and have been making my way thought all your channel.
Question: when validating my market, should I continue to use a free landing page (launch rock) or a more custom site that can be a “clickable prototype”?

[NcKel]

Dan, what is the best strategy (or several ways) to figure out the best price of SaaS product - high enough to get the profit and attractive enough for customers to buy it?

[JohnIdlewood]

1. How does it relate to SAAS ?
2. Most startups fail even before any investments

[gv]

Hey Dan, I had a couple questions about an idea & how to execute it, could we possibly exchange emails & discuss the best way to go about it? I guess we can talk in the comments but id rather keep my idea private & I've tried looking for a video of yours that best suits me but haven't found it yet. Can I give you my email or vice versa?

[raghavb]

Dan - why didn't I find you earlier!!

[TheJet]

Let’s apply your SaaS for design, construction & asset management for owner occupied housing with revenue suites to Spectacular YELLOWKNIFE - OMNI Mackenzie