The Hidden Reason Behind Startup Failure: Ignoring Processes and Operations

Rayan Bannai
Founder @ Squared
Internal Operations

Have you ever wondered why 20% of UK startups fail in their first year, and 60% fail within their first three years? As someone who has spent 6+ years helping companies scale, I’ve learned that two popular stats don’t tell the full story. Many times, these businesses are wildly successful but they fall over their own feet.

Let me give you an example. Company A has a great service, a great founder, a defined target market, and great marketing. On the surface, they look like they’re flying high with impressive sales, hiring and even a feature in Forbes. They’re knocking it out of the park. However, they soon find themselves facing a problem - everything is falling apart internally. They can’t manage the traffic, their onboarding process is a mess, they can’t deliver for their clients, and they don’t even know their day-to-day processes. Suddenly everything unravels, and within weeks, “poof” the company is gone.

So, what was their failure? They didn’t focus on their processes and operations. This is a common mistake that I see time and time again within businesses I work with. Ignoring processes and operations is a recipe for disaster, and I can’t stress enough how important it is to build a sturdy foundation for your company to build on. Without it, your success will only be short-lived.

By focusing on your processes and operations, you can ensure that your business is not just successful, but sustainable in the long run. It’s about creating a sturdy foundation that can withstand the ups and downs of the business world. So, if you’re thinking about starting a business, or you’re struggling to scale, take a step back and evaluate your processes and operations. It might just be the missing piece of the puzzle.

In conclusion, startup success is not just about having a great idea and executing it well. It’s about building a sturdy foundation for your company to build on. Don’t fall into the trap of ignoring processes and operations - it could be the difference between success and failure.

Rayan Bannai
Founder @ Squared
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