How To Avoid Startup Tension And Build A Thriving Company

All successful tech companies started their lives as startups — and after years of perseverance and hard work, they became the Intels, Googles, Ubers and Facebooks that have changed the world. Those companies wrought major changes in the way we live and work for a number of reasons. But from my perspective, the main reason they were able to do so was because they simply survived — unlike many companies.

The failure statistics for tech startups are by far the worst of any business; even in the restaurant business, which is notorious for closures, the frequently cited failure rate from a 2005 study by Ohio State University is only about 60% for their first year in business.

Why do startups tend to fail so spectacularly? There are many reasons, according to research from CBInsights, including running out of cash, getting outcompeted and just burning out from all the hard, intensive work.

During my time working with startup psychologist Yariv Ganor, I’ve learned that collaboration issues — such as when founders of a company don’t, can’t or won’t get along — are an important factor in startup failure. Indeed, the CBInsights report, based on an analysis of dozens of startup failures, indicates that not having the right team was the third most common reason for failure and the most common related to personal issues. Disharmony among the team or investors was another common cause of startup failure, right behind issues such as failing to develop an appropriate product/service for the market and running out of money.

And while many of the reasons for failure are out of the control of a startup — lack of cash, difficulty in attracting investors in a tough market, competition — developing a way for the founders to work together for their mutual benefit is certainly something under their control. Thus, if a startup is to survive to see its vision come to life, its founders need to find a way to work together and ensure that personal differences, different ways of working and disparate outlooks do not break up what could be a fulfilling and profitable partnership.

Read more: https://www.forbes.com