In this interview, serial entrepreneur Rafi Chowdhury tells us about how he’s dealt with common marketing challenges at each of his startups.
Startups… It seems like everyone’s trying to break into the market on their own these days.
The growing desire of millennials to “work for themselves” is causing the global emergence of over 305 million startups each year. This entrepreneurial trend doesn’t appear to be going away anytime soon as most millennials are reaching their 30s, which happens to be the age when most entrepreneurs emerge.
For the economy and product innovation, this trend is just awesome. The continual influx of new business means that us consumers are benefiting from various new technologies and the practical nature of competitive markets (better prices). But that doesn’t take into account one of the most compelling statistics about startups:
Over 50% of startups fail within the first four years.
Surprised? Maybe you were expecting a number closer to 80% or 90%? Well, you might be right. But the Washington Post thinks otherwise. It all comes down to what the criteria for eligibility is.
I’ll let you in on something – if you look it up right now, you’ll probably get a bunch of contradicting statistics about what percentage of startups end up failing. Some say it’s 90%, others say it’s more. Some experts, on the other hand, have chosen to rebut these statements, claiming that the figure is actually around 50%.
So in reality, the numbers vary (by a significant amount), reason being that the terms “startup” and “fail” are hard to define. What exactly makes a startup? A company with less than a certain number of employees? A new company that’s profit-driven? And what does a failure consist of? Does the company have to be shut down? Does selling the company count as a failure?
There are too many variables and we haven’t quite come up with standardized models to measure these numbers. Naturally, there will be different opinions, but no one’s arguing with Statistic Brain when they say that the actual number of startups that fail in the US is about 50%. So for all intents and purposes, let’s just agree with them.
Read the full article at: http://blog.spiralytics.com/startup-marketing-challenges-interview-with-rafi-chowdhury