Starting a business is already difficult enough, launching a startup can be even more challenging due to the fast environment, pressure from investors, etc. As a small business, you need to manage a set of complex operations and because of this, it's no wonder that a lot of startups fail.
Studies estimate numbers anywhere between 70% to 95% of all startups failing and there are many reasons for this trend– we’ll cover engineering mistakes that can result in business failure.
Hiring the wrong team
When hiring a team of engineers it is crucial to ensure that they are not only a good fit for the business, but that they can actually deliver the results in a given timeframe. For startups, time is a critical factor and the faster it can prove that its product is viable, the likelier its chances for survival.
The market is saturated with engineers that sound promising, but what startups really need is high-quality fast work that will create a solid foundation for the business to grow. Growing a startup is not a fancy job, the challenges often need quick solutions that are not always pretty but ones that will work.
Spending money on more than just the essential software and development before the product has proven viable and the startup establishing a stable growth phase is threatening to the lifespan of the company.. These additions to business are necessary for the process of development, but they are not a priority during the early stages of the business while it is still establishing itself.
Premature scaling is the most popular reason why startups fail– often takes 2-3 times longer to nail the product before the business is ready to invest in growth.
Using untested technology
Working with the technology that you know and you can trust is the key to eliminating unnecessary technological risks that can result in significant monetary loss. Startup founders often get fascinated by new technology and trade it for simpler, but more secure options that ensure productive work when startup just enters the market.
Implementing the technology that is relevant to the market, but is not relevant to the business can end up in engineers in redoing all the work if something goes wrong.
Product and management
In the chaotic startup environment, it can be often challenging to create a realistic plan and bring it to life. Startups often overestimate the capabilities of smaller teams and burn out before they manage to make progress. It is not exactly an engineering problem, but as the startup mentality relies strongly on teamwork, it can affect the engineering team greatly.
Not having a clear vision
The clarity in goals and how you want to achieve them is the foundation of successful business practice. You need to be able to communicate your goals both to your clients and your employees to ensure that everyone knows why you are doing what you are doing
For software engineers, it is important to know exactly where you want to get in order to create a solution that would fit your business needs. Not having a clear vision may have you end up walking in circles without any progress, which is what is essential for startups to survive.