Imagine building a boat to cross a river. Instead of focusing on the essentials, like a strong hull to keep you afloat, you spend time and resources installing fancy gadgets that won’t help you get to the other side. The result? You sink before you even leave the shore.
Many tech-enabled startups are making the same mistake by pouring money into cutting-edge technology before they’ve proven their business can stay afloat. Until you achieve Return on Investment (ROI), investing heavily in tech can be like throwing money overboard without knowing if you’ll reach the other side.
High costs are a silent killer for many startups. With development expenses ranging from $200k to $500k, it’s financially risky for companies that haven’t yet found product-market fit. In fact, 90% of startups fail due to cash flow problems, and focusing on tech too early can be the reason why.
What’s more, 42% of startups fail because there’s no market need for their product. If you haven’t validated demand, spending on technology is like upgrading a car with no wheels. It’s better to start with a sturdy foundation and focus on proving value first. You can always invest in tech later, once your core business is profitable.
Using simpler, existing platforms (like WordPress) can save you time and money, giving you room to learn and grow. Once you’ve crossed the river and established a profitable business, you’ll have the resources to invest in tech without the risk of sinking too early.
Focus on ROI first—once your business thrives, the tech upgrades will come naturally and sustainably.
