#1 Cause of Startup Death? Premature Scaling

My friends at Startup Genome just released a report on why startups fail. After analyzing surveys from 3,200 startups they concluded that of the majority of startups that failed, 70% fail because of premature scaling. Although, I did not run the analysis, based on the research I conducted for my recent book, Nail It then Scale It, I couldn’t agree more—most startups fail precisely because they try to scale too early. Oh yes, and by the way, premature scaling also kills innumerable new projects at existing businesses as well, so innovators everywhere, beware.

http://www.forbes.com/sites/nathanfurr/2011/09/02/1-cause-of-startup-death-premature-scaling/