5 reasons for the failure of nternet startups

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introduction: We interviewed dozens of Internet entrepreneurs, they prove their success has figured out how to survive in the market. Here, for all entrepreneurs to explain the five main reasons for the failure of Internet companies.

Editor’s note:

Entrepreneur magazine staff and writer Ricci · Ming zhe (Rich Mintzer) interviewed dozens of Internet entrepreneurs, the Internet entrepreneur has proven successful, they have already figured out how to survive in the constantly changing market. In this edited excerpt, the author discusses five main reasons for the failure of some Internet companies in the past, and you can learn from their mistakes.

before starting work at your company, it is necessary to know why so many Internet Co give up halfway. Here are the 5 main reasons we have concluded:

1 bad balance sheet calculation. Companies that fail and fail at any time have not produced an accurate financial statement that shows a reasonable relationship between income and expenditure. Too many startups are running out of money before they make money. You need to realize that people in learning to walk and then walk slowly before the small steps, you should learn to crawl.

when you spend money, you need to understand that, yes, you may need a good team, but they need to trust the company, and understand that there will always be some bad days.

that is, you do not need to hire a luxury office, or experienced Law Corporation and the pricing of consultants. You can use a variety of financial software on the market to keep your expenses in line with your income.

tip: from the first day of business on financial figures, and never stop doing it until you earn enough money to hire a professional accounting and financial analysts for you to do it now. And you should check them regularly.

2 no revenue model. For Internet start-ups, the core question is "what is your income model?" (this is a simple expression of how you imagine your company’s future revenue source. What are your sources of income? How do you want to make money? Potential investors will ask this question, potential employees, partners and the company’s future financial situation will ask the question.

Internet Co in the early entrepreneurs may be lucky enough to get a lot of unexplained income, income includes advertising revenue, and mixed business, and in most cases, the answer is to accept this model. In fact, this is a mistake, because many of the failure of the Internet Co to prove that none of them really established a long-term viable revenue model. Now, despite the fact that many investors are smart, simple business logic will still be popular. You need >

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