The most likely factor that can lead to startup failure is people.

First is the founder. Before Xu Xiaoping decided to invest, he had to consider three aspects of the founder's ability: learning ability, working ability, and influence. Especially the ability to learn, if the founder are not the ability to continue to learn, continuous progress, it is difficult to imagine that he led the rapid growth of the enterprise. DDT started from 800,000 RMB and reached the scale of 10 billion dollars today. Wang | Gang, an investor of DDT, thinks that the most fundamental thing is still due to the founder Cheng Wei's strong learning ability and fast progress. Zhang Lei, managing partner of High Tide Capital, once commented on Cheng Wei: "Every quarter I see him, his progress is very great, such a person, you say do not invest in what else to do, must be invested ah."

The second is the partner. Xu Xiaoping once summarized, Zhenge Fund invested in a very large number of projects, looking back to see the failure of the enterprise, the vast majority of them have *** with the same characteristics, or do very difficult business has a *** with the same factors, that is, their founders only a boss, there is no second, the oldest, not accounted for double-digit partners. This is a very painful lesson. A lone tree does not make a forest. It's so true, if you can do it, you definitely can't do it without help.

Once again, it's the team members. Many startups have no problem with their founders, no problem with their partners, no problem with their markets, no problem with their business models, but they still don't grow quickly, mostly because they hire mediocre people. The quality of your products and services depends on the people you hire-developers, operations people, sales people, etc. If the company's core team is mediocre, then the products and services are doomed to be mediocre as well.

Two: Wrong goals

One of the most common mistakes ambitious entrepreneurs make is to set unrealistic goals. One of the reasons for this mistake is that instead of doing what you're good at, you target the ones with the greatest opportunity. Entrepreneurs should understand what areas their resources are spread out in, who they need to find once the project is launched, and what resources they need to utilize. Instead of hearsay, blindly enter a blue sea or even red sea.

The second reason is the lack of focus. Smart people will always want to try a lot of new ideas, but a startup with limited resources can't afford to try them all. It's good practice to focus on the needs of consumers, provide one market service, target one user group, innovate one compelling feature, and address one tangible consumer need.

Third, the product is not right

In the face of a fully competitive and extremely complex market, and in the face of increasingly difficult to fathom the psychology of the consumer, the startup's product will face a huge challenge on the first side of the world.

If there are too many defective products, or the defective rate is too high, it is easy to lead to product stagnation and hoarding, such consumption makes it difficult for startups to bear; if the life cycle of the product is too short, the product will be encountered shortly after the product is introduced to the elimination of the risk of the company's response to the untimely or ineffective operation, the company will quickly fall into trouble; if your product or service fails to solve the consumer's specific needs, it is Can not get the favor of investors, no matter how surprising your technology or innovation.

Four: Insufficient capital

What's the one thing entrepreneurs lack the most? The answer given by a significant number of people would be, money.

This is true, if the entrepreneur underestimates the financial needs of the financial budget is missing, in the operation or production can not be effective use of funds, it will be difficult to create profits.

It takes money to start, and even more money to keep going. In the words of Jack Ma, the two main reasons for the failure of entrepreneurs is that they did not start and did not insist. And the prerequisite for persistence is to have enough money. Many people do not consider the importance of liquidity at the beginning of the business, so they start a business without sufficient liquidity. Unbeknownst to them, many people need to hold on for a while after starting a business that is not running very smoothly, and then they have to give up early because they do not have sufficient liquidity. If entrepreneurs do not have sufficient liquidity to maintain operations for more than six months when starting a business, it is best not to go easily.

Fifth, the lack of execution

For startups, good ideas are important, but good execution is even more important. Good ideas are easily copied by others, and you can't stop followers, you can only keep speeding up your own pace. Strong, sustainable execution is an important driving force for businesses to move forward.

Good execution involves both getting a set plan off the ground and reacting and responding quickly to changes in the marketplace and in consumer demand. In fact, don't worry too much about the plan you started with. Many successful companies have completely changed the original intent of their venture midway through the process and opened a new business plan. In most cases, the direction of the adjustment is determined by the consumers you serve.