70% of startups fail between their second and fifth year of existence. DesignRush interviewed the top-rated software consultants to reveal the biggest mistakes tech startups make when building their product.
NEW YORK - AUGUST 26, 2021
10% of startups become dysfunctional in their first year, and 90% fail in the long run. Reasons for startup failure go from the funding issues and product-market fit to the offering, in this case, software product itself.
DesignRush, a B2B marketplace connecting brands with agencies, leveraged its 9,000-agencies-strong network for quick insights – or “QuickSights” – to discover what tech startups can do to position their software product for long-term success.
1) BANKING ON THE MVP ALONE
According to Lukasz Karwacki, CEO of Sunscrapers, founders often forget that running a successful business requires more than a high-performance product.
- “First-time founders often overestimate the technical part of their startup and underestimate the business side (sales, marketing, operations),” said Karwacki. “Instead of spending all [their] energy and resources on the minimal viable product (MVP), I’d recommend leaving at least 50% of the budget for marketing, traffic generation and post-launch changes.”
2) MEASURING ONCE; CUTTING TWICE
Co-founder and COO of KindGeek, Yuriy Gnatyuk, says investing in the discovery phase pays dividends in the future.
- “One of the biggest mistakes companies make in the software development space is starting any kind of coding without the discovery phase (BA, architecture composing, tech stack decision, and UI/UX research planning),” said Gnatyuk. “Each dollar you invest in preparation before the beginning of the project will save you $100 or even $1000 in future development phases and product circles.”
3) SKIPPING THE MVP
Joey DiGangi, chief operating officer at WD Strategies, says the MVP is a great way for realizing early concepts faults and strongpoints.
- “Companies too often forsake the idea of the minimally viable product,” says DiGangi. “The MVP is this idea that says you don't have to deliver the perfect product on the first try. [...]Instead, deliver a software prototype that satisfies core needs of your consumer, costs less time and capital to develop, and lets you validate assumptions, generate early-stage revenue, and build up your initial market presence. Then you continue to develop towards the ultimate vision along the way.”
To help businesses take their product to the market, DesignRush released the August list of the top software development companies:
- Sunscrapers - sunscrapers.com
- Code Inspiration - codeinspiration.pro
- aQb Solutions - aqbsolutions.com
- SPsoft - spsoft.com
- Hypernova Labs - hypernovalabs.com
- Cloudester Software - cloudester.com
- Infosparkles IT Solutions - infosparkles.com
- Inflexion Software - inflexionsoftware.com
- Green Apex - green-apex.com
- Kind Geek - kindgeek.com
- WD Strategies - wd-strategies.com
- Tulumi - tulumi.com
Brands can explore the top software development companies by location, size, average hourly rate and portfolio on DesignRush.
DesignRush.com is a B2B marketplace connecting brands with agencies through expert reviews and agency ranking lists, awards, knowledge resources and personalized agency recommendations for vetted projects.