What 2024’s startups got wrong

Starting a business is thrilling – but let’s face it, it’s also risky. If you’re gearing up to launch in 2025, you don’t want to repeat the same mistakes that sunk so many startups in 2024.

From burning through cash too fast to ignoring customer feedback, there’s a long list of missteps that can trip up even the most well-intentioned entrepreneurs. But don’t worry – we’ve got the inside scoop on how to dodge these common pitfalls and set your business up for success in the year ahead!

Key Findings:

• Business expert explains the top mistakes startups made in 2024 and how your business can avoid them
• From cash flow issues and bad pricing to scaling too fast and ignoring feedback, these are the issues that killed startups in 2024
• Expert gives their top tips for business success in 2025

There are hundreds of reasons to found your own business – from greater professional freedom to the potential to strike it big. Being your own boss has never been more appealing, with a record-breaking 5.5 million new business applications filed with the US Chamber of Commerce in 2023.  

“If you’re starting your own business, don’t get caught up in the hype and forget the big picture,” says Yassin Aberra, the CEO of Social Market Way, a digital marketing agency specializing in SEO. “The sobering fact is that 90% of all startups fail. If you want to be part of the 10% who succeed, you need to look at – and avoid – the mistakes other entrepreneurs have made.”

Below, Yassin explores the top mistakes startups made in 2024 and how your new business can avoid them as we move into the new year.

Burning through cash too fast 

The Mistake

Lavish office spaces, premature hiring sprees, and inventory mismanagement can leave your budget gasping for air. Fun fact: 82% of startups that fail blame poor cash flow management.

The Fix

• Plan A Budget: Treat every dollar like it’s your firstborn. Use tools like QuickBooks or consult an accountant to make sure you’re on top of cash flow.
• Stash A Safety Net: Save up a safety net fund for those slower months.
• Be Lean And Mean: Resist splurging on unnecessary frills. “Skip the pool table and focus on things your team actually cares about, like getting paid on time,” says Yassin.

Assembling a team of misfits

The Mistake

Your dream team matters! Rushing hires or overlooking whether an employee will fit into your company culture is a surefire way to end up with clashing egos or skill gaps. About 23% of startups cite team issues as a reason for failure.

The Fix

• Hire Smart: Seek talent that aligns with your mission and has the chops to deliver.
• Invest In Culture: Build trust with honest communication, timely pay, and feedback that isn’t soul-crushing.
• Don’t Overstaff Early: Employ freelancers or part-timers until your growth justifies more hands.

Pricing like a novice

The Mistake

Overpricing sends customers running; underpricing tells them, “I’m too cheap to be good.” Either way, you’re leaving cash on the table.

The Fix

• Do Market Research: Know your value and what customers will pay.
• Adjust Fast: If prices aren’t right, pivot quickly without whiplashing your loyal buyers.

Flying without contracts

The Mistake

Trusting handshake deals over ironclad contracts is like riding a bike without brakes. It might work, but it probably won’t. “Papertrail is everything,” says Yassin. “Always get it in writing.”

The Fix

• Sign Everything: From co-founders to freelancers, lock down every agreement in writing.

Skipping market research

The Mistake

It may seem crazy that 42% of startups fail because no one wanted their product. You might be asking yourself – how do you found a business without knowing people want to buy your product?

“No one knew they wanted a service like Uber before they got it,” Yassin points out. “Everyone’s looking for the next big thing everyone never knew they wanted, and unfortunately, many are getting it wrong.”

The Fix

• Survey Like A Pro: Ask potential customers what they want before building. Tools like Typeform can help.
• Observe Competitors: Study their wins (and epic fails).
• Test And Iterate: Launch small, tweak, repeat.

Playing the lone wolf

The Mistake

Refusing to delegate because “no one does it better than me” isn’t confidence—it’s a shortcut to burnout. “It can be difficult to let go of the reins – this company is your baby – but you can’t do it alone,” says Yassin.

The Fix

• Spread The Load: Delegate tasks that zap your energy (or those for which you lack the expertise).
• Communicate Clearly: Explain expectations to your employees or contractors upfront and give constructive feedback.
• Embrace Fresh Ideas: Remember that a team brings perspectives you’d never think of on your own.

Scaling too fast, too soon

The Mistake

Premature scaling leads to supply chain disasters, stressed staff, and customer complaints. While it’s tempting to scale up and reap the rewards of more customers and more money, over 70% of startups fail due to scaling before they’re ready.

The Fix

• Build A Solid Foundation: Perfect your core business before expansion fever hits.
• Pilot First: Test new markets before going all in.
• Track Growth Metrics: If your cash flow, team, and processes aren’t scaling together, hit pause.

Ghosting your digital presence

The Mistake

Neglecting your website or social media is like opening a store and hiding the sign out front. No one knows you exist! “Social media marketing is a core component of any business these days, so you need to figure it out,” says Yassin.

The Fix

• Polish Your Website: Make it mobile-friendly, fast, and visually pleasing.
• Get Social: Post consistently and engage with your audience.
• Track The Data: Use tools like Google Analytics to see what’s working and improve your SEO so potential customers can find you.

Ignoring Customer Feedback

The Mistake

Shutting out your audience’s voices is like plugging your ears while everyone screams, “You’re going the wrong way!” Your customers are the ones you want to buy and use your product, so ignoring what they want is a surefire way to tank your company.

The Fix

• Collect Feedback Regularly: Surveys, reviews, and one-on-one chats work wonders.
• Act On It: Don’t just file complaints away—address them.
• Stay Grateful: Acknowledge feedback and let customers know you’re listening.

Chasing Short-Term Wins At Long-Term Costs

The Mistake

Pouring everything into instant gratification often sacrifices future sustainability. Spoiler alert: it’s a trap.

The Fix

• Think Big Picture: Balance immediate goals with long-term plans.
• Build Scalably: Invest in tech and systems that grow with you.
• Track Key Metrics: Keep an eye on customer retention, not just acquisition.

Yassin Aberra, the CEO of Social Market Way, commented: “Building a successful business, no matter the size, comes down to a mix of strategy, resilience, and connection. The first step is having a crystal-clear vision of what success looks like for you. Is it a thriving team, a certain revenue milestone, or creating a product that changes lives? Once you know your ‘why,’ every decision becomes easier. 

“But don’t stop there—strategy is vital. Research your market like your life depends on it, because it does. Know your audience better than they know themselves and tailor everything—your product, messaging, even your customer service—to serve them. 

“Then, don’t be afraid to pivot when the data tells you to. The reality is, businesses don’t fail because people didn’t work hard; they often fail because they refused to adapt. Surround yourself with people who are smarter than you, whether that’s your team, mentors, or even your competitors—yes, you can learn a lot from them! 

“And finally, take care of yourself. Burnout isn’t a badge of honor; it’s a business killer. When you’re thriving, your business will, too.”

Content attributed to Social Market Way, a digital marketing agency specializing in SEO, lead generation, and online visibility strategies. They focus on helping businesses increase organic traffic, boost search engine rankings, and drive targeted leads to achieve measurable growth. 

Sources

• Number of new business applications in 2023: US Chamber of Commerce.
• The overall percentage of start-ups that fail: Forbes.
• Statistics on why companies fail: Zippia.
• Percentage of companies that fail due to premature scaling: Forbes.

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