Why Belgian startups fail? Key insights for future entrepreneurs

Starting a new business is exciting. Who doesn’t dream of their startup taking off and becoming the next big thing? If you’re not a dreamer, are you even an entrepreneur?

Reasons 10% of startups fail within the first year

• The idea is amazing, but unfortunately the team is not: even the best ideas won’t make it if you don’t have the right skills or team synergy
• There is no market demand (yet): you haven’t talked to (enough) customers
• Too many adaptations to your product/service confuse the market and chase away early adopters: again, seriously talk to your customers
• Your offering has pricing issues: it is too expensive for your customers, so you don’t gain traction, or too costly for you to produce at the price point
  

Reasons 70% of startups fail in years 2-5

• The organisation grows too slowly or too quickly: sustainable growth above all
• The right people are not in the right place, especially in senior management, or the investors (VCs) are wrong for the startup: make sure you share the same values and have the same expectations
• The founders are too optimistic and only see what they want to see: remember we said “talk to your customers”? We meant listen to your customers.
• The money runs out due to a high cash burn and lack of funds/financing: always keep an eye on that runway and turn over every cent like it’s your last one
• When things go wrong, management is led by emotion: anger, shame, sadness, and denial all lead to clouded judgment and poor decision-making

External factors

↗ Not enough sales

Sales are the lifeblood of any company, big or small. This step seems so basic it is impossible to neglect, and yet it happens all the time. Whether the problem is you can’t find leads or you can’t close deals, the outcome is the same: your sales pipeline isn’t flowing.

Business coach Inge Wouters explains: “It’s something I see over and over again. Founders who spend too much time behind their desks instead of talking to their potential customers. Or, they do talk but they don’t listen: they only want to hear positive feedback and are scared to keep asking questions to bring up the challenges. In reality, you need to be out there, asking questions, picking your customers’ brains and constantly trying to find weak spots in your business so you can fix them before they become a problem.”

Business coach Christophe Cieters adds: “Even if you build the “perfect” product in isolation, it's unlikely to succeed without customer contact. It's crucial to start those sales conversations early, even before your product is finished. Not only do you get concrete customer feedback, you learn how to sell. Many startups regret waiting too long to begin these conversations, not realizing that sales will take some time to start happening, and closing deals means having direct interaction with your customers, not just sending out a bunch of emails.”

Can your pipeline use a boost? Check out our Sales Sprint program program for proven sales results!

↗ Not enough market validation

Finding product-market fit is crucial for the success of any startup. What challenge do you solve in a way no other product or service can? Are these challenges top of mind for your customers, or more of a nice to have? Your ideal customers are those who suffer the most from the pains you solve. Who are they, how many of them are there, and where do you find them? If you don’t find a good product-market fit, your product will fail to resonate with customers, no matter how innovative you think it is. If you have already found your product-market fit and are looking to scale, Market Me is designed for ambitious entrepreneurs like you, providing the tools and guidance needed to turn your success into a scalable business model.

Business coach Inge tells us: “It can be very tempting for founders to stay in their little corner, tinkering away and building the perfect product - to them. They develop their product in isolation, based on what they think the customer wants. Only to find out later they’re missing key aspects, or that a market for their product simply doesn’t exist. The reality is, you need to engage directly with your customers, listen to their pain points, and adapt your product accordingly. It is an iterative process, you have to go out there and listen to your customers. This is essential to discover the sweet spot where your product truly meets market demands.”

Business coach Christophe adds: “Unless your customer clearly indicates that a specific feature would convince them to buy your product, or make them spend more money on it, it is not worth spending time on.”

Do you have a unique product or service in mind? Pitch it to our jury and fast-track your startup growth with our accelerator program.

↗ Over-adaptation

It’s easy for founders to fall into the trap of making too many adaptations to their product or service. While it might seem like constant tweaking will improve your offering, it can actually confuse the market and chase away early adopters.

Business Coach Christophe:

“A lack of focus is a real killer. Trying to be everything to everyone is not only impossible, it ends up driving customers away because no-one feels the product is just right for them. Focus on a specific, underserved niche, demonstrate your solution’s value, and expand from there.”

Business Coach Inge:

"I've seen many founders lose their way by continuously adjusting their product based on every piece of feedback they receive. Instead of creating a better offering, this confuses and drives away your early supporters. The solution is to engage in serious conversations with your customers. Understand their core needs and focus on meaningful improvements that enhance their experience without overwhelming them. You cannot be all things to all people. That's why I often recommend founders to participate in programs like Market Me to help them stay focused and aligned with their market needs."

Internal factors

↗ Wrong team composition

An amazing idea is definitely the right place to start your startup success, but it is only part of the full picture. Even the best ideas won’t make it if you don’t have the right skills or synergy in your team. Having the wrong team composition can severely hinder your progress.

Business coach Sabine Claeys says: "To succeed as an entrepreneur, you need a wide range of skills, and it's incredibly rare for one person to have them all. This is why it is crucial to form a balanced team with complementary skill sets, and to surround yourself with (external) experts. The journey of a startup is unpredictable and challenging. It demands a lot from the founders, both professionally and personally. Maintaining a realistic view of business and having a healthy dose of perseverance will take you a long way."

↗ Poor financial management

A solid business plan is your roadmap to success. It helps you navigate the complexities of starting a business by providing clear goals and strategies. Equally important is maintaining organizational and financial agility. Ensure you have a buffer to handle unexpected costs or delays in income. This flexibility allows you to adapt quickly to changing conditions and keeps your business resilient.

Olivier Verhaege, executive at Umain, shares his insights: "I've seen startups struggle because they immediately look for external funding without checking their internal resources first. It's also common to see them not scrutinizing every expense, leading to unnecessary costs. Not having a financial buffer for unexpected expenses or delays in revenue can be another major pitfall. Bootstrapping and careful financial planning are crucial to avoid these issues."

↗ No clear agreements

One last crucial lesson for startups is the importance of having clear and well-defined agreements. It's easy to overlook this aspect in the excitement of launching a new venture, but vague or informal arrangements can lead to significant problems down the line.

Legal counsel company Monard: “It's essential to formalize agreements in contracts, not just with customers and suppliers, but also among co-owners or co-founders. These contracts should clearly outline roles, responsibilities, expectations, and procedures for resolving disputes. Without such clarity, misunderstandings can arise, leading to conflicts that can end up derail the business.

In my experience, many startups fail to appreciate how vital these formal agreements are until they encounter issues. Taking the time to draft and agree upon detailed contracts can save a lot of headaches and help ensure smooth operations as the business grows.”

Check out some more tips from Start it Accelerate’s partner Monard