Updated: Nov 14, 2020
Solar modules are proven to be highly reliable with a failure rate of 0.05% based on a report from the U.S Department of Energy that examined 54.500 PV systems however when it comes to startups in Solar Energy and other sectors the story is different.
7.5 out of 10 venture-backed startups fail. 90% of startups fail with 10% within the first year and 70% falling between years 2 and 5. Only 1% of startups evolve into a unicorn startup, like Uber and Airbnb. Let’s go back to the basic purpose of every business which is to generate revenue and profit. This process has two major pillars a) your business and b) the client. Without clients, your business will not generate profits and revenue and will ultimately fail. By investing the greatest deal of your time and brain activity pitching to investors instead of pitching your business to potential clients, shifts your attention from your number goal which is not to secure the next funding round but to Acquire New Customers. Your Startup Business needs an effective Sales Strategy in combination with skilful individuals to implement it. Its ability to attract and retain customers will keep it afloat.
Understand how to monetize your business. Organic growth is the key to Startup success. Not external funding.
In the full CB Insights survey based article I demonstrate in a nutshell that the top 5 reasons of startup failure are sales related.