Three Reasons Why Your Tech Startup Will Fail

A tech startup is an excellent way to change the landscape of a particular industry or truly make a name for yourself in the digital sphere. There's never been more resources at our disposal nor people ready to adopt new digital products. However, this is not to say the market for startups is an easy sell. Here are three crucial elements, that if not taken into consideration, can cause any tech startup to fail.

1. It isn't cool.
From the user experience to the market materials, in the competitive world that comprises startup culture your business needs to be cutting edge (not a remake of Pinterest). The idea must connect with a simple need that an audience you can reach will quickly understand. The question of, Why? Should be answered within five seconds.

The branding should be as intuitive as the user experience. It should syndicate seamlessly with other platforms (sign-ins through primary social networks speed up the process of getting started and enable easier cross-network promotion). Special attention to mobile is a must. Responsive website design for both tablet and mobile is a must. Geotargeting should be strongly considered, but may not be applicable for all. You are selling to the top digital decision makers -- people that know what their time and information is worth. They also know what developments exist and every step you miss is another ping of doubt as to whether investing their time in your app will be a complete waste.

Is it worth their time? Is it worth their friends' time?

2. Your profit margins are too far out, and you're not prepared for them.
As any business goes, your startup is only as valuable as the people you have using it. It doesn't matter if you angel investor dropped five million into your project -- if no one uses it, no one gets paid.

With that in mind, who you hire needs to be aware it could be months before they get paid. This doesn't mean you can't recruit top talent, but it does mean you are going to need to pander a bit to land and keep them.

Your leadership must be a top notch relationship builder. They must identify which top talent has potential as brand evangelists. Once talent is hired on, that leadership must come through on every promise made. Running a quality company on a shoestring budget is not cheap, it is paid for by the blood and sweat of leadership meeting the expectations of their employees. These employees are not working for your company because it is a job, it is because they are passionate about what they do and who they work for.

And yes, a few interns aren't a bad idea either. Just please be sure to reimburse them better than the man delivering your company sandwiches.

3. It doesn't make enough money.
We've all seen "The Social Network" and listened to Justin Timberlake, as Sean Parker, spout to Jesse Eisenberg, as Mark Zuckerberg, that trying to make money off the early Facebook was a big mistake. That no one knew what it was yet, and to (I'm paraphrasing here) let it gestate to maturity.

Yes, this is great advice, but on the other side of the coin eventually your investors will come knocking, your staff will want to be fed, and all those promises you made will need to be delivered. Facebook was revolutionary, but we don't need to reinvent the wheel. Tech business models have been developed with real business marketing dollars that users are growing increasingly familiar with. Adopting, or at least considering, a few of these strategies is a great step toward giving your employees and investors a plan.

A plan gives order to chaos and even if it isn't how it probably will work out, it gives people a sense of control so they can get on with their best work and the idea that you all believe in can truly flourish.

Had any experience with a failed or successful startup? Would love to hear about your experience.