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Business Challenges in Technology Startups

Updated: Jan 9, 2022

More than 90% of new tech start-ups fail before 3 years-old. What's going wrong?

Those who are related to the subject are more or less familiar with, and even if you are a newly established technology startup, perhaps you are experiencing these difficulties one-on-one. The first 3 years in technology startups are very painful and statistics show that unfortunately few companies get through this period successfully, 10% Max. So why does a relatively qualified ecosystem produce output with such low yields and high loss rates?

The first 3 years in technology startups are very painful and statistics show that unfortunately few companies get through this period successfully, 10% Max.

The main issue that I have observed in my own close circle and that I would like to mention is actually the non-technical issues and difficulties that technology companies or startups will face. When you perform a little research, you see that the reasons for tech startups to shut down are actually very basic business issues, not lack of engineering.

  • Lack of customer interest or market/marketing problems

  • Wrong business model

  • Wrong team or poor internal communication problems

  • Pricing/competition

  • Product/Productification Problems

  • Due to these, inability to provide cash flow and closing

These are actually not very surprising titles, moreover, they are ancient issues, and perhaps the issues related to sales, marketing, finance, human resources, which have been finding answers in "Business" for a century. The interesting thing is that sometimes the conditions are forced, sometimes in the new journey with dreams, studies carried out away from basic business knowledge unfortunately take them back rather than forward, and technology startups face undeserved difficulties in the market.

The bottlenecks faced by many people and startups, whose engineering intelligence and what they do, both prevent the sustainability of those companies and cause waste of effort before and after the release to the market. When I ask my friends, whom I can't get enough of in terms of engineering, how they manage their customer finding and sales processes, or simply, "Have you heard of Pipeline?" When I call, either I can't get an answer or only his name is known. Now I'm not even going to talk about the products that couldn't go to the market with the spirit of perfectionism or the weak marketing issues that didn't even have digital and content studies. As someone who is an engineering graduate and has had difficulties getting used to business processes and is still trying to get used to it :) I see that this is due to the paradigm difference between engineering and business, and especially as the difficulties of entering the market with a pure engineering paradigm without a business formation or approach. No matter how high the technical knowledge is, the market and the business world have their own parameters and processes, and these often work differently from the engineering paradigm.

For starters, at least focusing on the product and service, related market/customer interest, market entry and post-marketing activities, product/service sales cycle, pipeline management, determination of targets and KPIs, and timely revisions with monthly/quarterly checks. I advise.


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