{"id":44077,"date":"2020-09-23T13:43:18","date_gmt":"2020-09-23T13:43:18","guid":{"rendered":"\/us\/en\/blog\/?p=44077"},"modified":"2025-06-27T01:04:36","modified_gmt":"2025-06-27T08:04:36","slug":"what-challenges-are-terminal-for-startups-and-what-could-be-the-cure","status":"publish","type":"post","link":"\/us\/en\/blog\/what-challenges-are-terminal-for-startups-and-what-could-be-the-cure\/","title":{"rendered":"What challenges are terminal for startups\u2014and what could be the cure?"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">Digital and cloud-based technologies are common practices for all companies now. The last time a major business application was launched (<\/span><i><span style=\"font-weight: 400;\">not<\/span><\/i><span style=\"font-weight: 400;\"> as a cloud-based application) was back in 2016. Eighty-four (84%) of small businesses stated in June 2020 that cloud-based applications are essential for their success.*\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">There are 50 million startups each year and 20% fail at the end of the first year\u201450% by the end of the second year.** The DNA of failure falls into three core areas:<\/span><\/p>\n<ol>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">product and marketing challenges (56%),<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">operational and people challenges (26%) and<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">technology, finance and legal problems (24%)<\/span><\/li>\n<\/ol>\n<p><span style=\"font-weight: 400;\">Even venture-funded companies fail 75% of the time\u2014and they usually have the operational backbone skills and knowledge to avoid these traps. If you are an information-based startup, then the failure rate is nearly <\/span><i><span style=\"font-weight: 400;\">twice<\/span><\/i><span style=\"font-weight: 400;\"> that of the finance sector.**\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">But still there are many reasons for startups not to have a go at it.\u00a0<\/span><\/p>\n<hr \/>\n<p class=\"p1\">\ud83e\udd1d Is your tech startup&#8217;s team collaborating as effectively as it can to provide good customer service?<\/p>\n<p class=\"p1\">\n<div class=\"download-form-widget standart-download-form\" data-url=\"https:\/\/netstorage.ringcentral.com\/documents\/checklist_for_startups.pdf\" data-id=\"6a1b6e72477e5\" id=\"6a1b6e72477e5\">\n\t\t<button tabindex=\"on\"  on=\"tap:6a1b6e72477e5.toggleClass(class='open')\" class=\"open-modal-download-action download-form-button\" type=\"submit\">\ud83c\udf1f Download the checklist to find out<\/button><\/p>\n<div class=\"download-form-modal\">\n<div class=\"download-form-modal-body\">\n<div class=\"download-form-modal-content\">\n<div class=\"download-form-modal-title\">\ud83d\udc40 Get this free checklist to evaluate if your startup's current approach is working for you. <\/div>\n<form class=\"download-form SMB\" method=\"post\">\n<div class=\"download-form-part\">\n\t\t\t\t\t\t\t<input class=\"download-form-input\" aria-label=\"Full Name\" aria-required=\"true\" aria-invalid=\"false\" type=\"text\" name=\"fullname\" placeholder=\"Full Name\" data-dl-events-hover=\"true\" data-dl-element=\"text\" data-dl-additional-info=\"download form\">\n\t\t\t\t\t\t<\/div>\n<div class=\"download-form-part\">\n\t\t\t\t\t\t\t<input class=\"download-form-input\" aria-label=\"Email (please enter a work email address)\" aria-required=\"true\" aria-invalid=\"false\" type=\"email\" autocomplete=\"on\" name=\"email\" placeholder=\"Email (please enter a work email address)\" data-dl-events-hover=\"true\" data-dl-element=\"email\" data-dl-additional-info=\"download form\">\n\t\t\t\t\t\t<\/div>\n<div>\n\t\t\t\t\t\t\t<input type=\"hidden\" name=\"popup_form\" value=\"1\">\n\t\t\t\t\t\t<\/div>\n<div><input type=\"hidden\" name=\"Asset_ID__c\" value=\"ODAM-01420\" class=\"download-form-input\"><\/div>\n<div>\n\t\t\t\t\t\t\t<input type=\"hidden\" name=\"Lead_Entry_Source__c\" value=\"RC Blog\" class=\"download-form-input\"\/>\n\t\t\t\t\t\t<\/div>\n<div class=\"download-form-part\">\n\t\t\t\t\t\t\t<button class=\"download-form-submit\" type=\"submit\" data-dl-element=\"button\" data-no-auto-dl=\"true\" data-dl-additional-info=\"download form\" data-dl-name=\"Get it now\">Get it now<\/button>\n\t\t\t\t\t\t<\/div>\n<\/p><\/form>\n<p> \t\t\t\t\t<button on=\"tap:6a1b6e72477e5.toggleClass(class='open')\" role=\"button\" tabindex=\"0\"  class=\"download-form-modal-close\"><\/button>\n\t\t\t\t<\/div>\n<div class=\"download-form-modal-thank\">Enjoy! <\/div>\n<\/p><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<\/p>\n<hr \/>\n<h2><b>You can beat these failure rates with one tool: Unified communications<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">This portfolio of traps and issues still don&#8217;t put off the 50 million startups that launch every single year. The boundless possibilities in front of startups outweigh these well-documented challenges, year in and year out.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">But imagine if you could reduce the challenges and traps by 10% or 20%. Imagine the power to succeed in startups then, if you could cut out the basic elements that kill success rates?\u00a0<\/span><\/p>\n<h2><b>Solve collaboration issues first\u2014it&#8217;s a startup killer<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">Put product fit failures and marketing problems aside. One of the four challenges mentioned in Failory&#8217;s research are actually under your control.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">It&#8217;s collaboration.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In fact, if you can&#8217;t collaborate in near-real-time, then the tools that you&#8217;re using (voice, video, data) are part of the problem when they <\/span><i><span style=\"font-weight: 400;\">should<\/span><\/i><span style=\"font-weight: 400;\"> be part of the solution.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">A portion of the challenges we face every day are really communication-oriented in nature. If you could solve 50% of those, how much of a positive impact can that make on your survival rate?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Think about the dynamics involved in startup environments: 24\/7\/365 workloads, constantly evolving ideas and experiences. These all create levels of stress and ambiguity that confuse the collaboration process. Almost every startup faces this.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">But how many corporate environments would talk about\u2014and address\u2014their failures in such a simple and clear way? It&#8217;s rare that any business would come out and attribute any part of their dysfunctions to &#8220;people problems.&#8221; But what if they made solving that issue a priority? The solutions are there.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">For example, <\/span><a href=\"https:\/\/www.ringcentral.com\/us\/en\/blog\/unified-communication-platforms\/\"><span style=\"font-weight: 400;\">UCaaS<\/span><\/a><span style=\"font-weight: 400;\"> (Unified Communications as a Service) is a SaaS platform literally designed for 365\/24\/7 collaboration through the cloud, for any method of collaboration (messaging, video, phone with <\/span><a href=\"https:\/\/www.ringcentral.com\/us\/en\/blog\/best-file-sharing-app\/\"><span style=\"font-weight: 400;\">file sharing<\/span><\/a>,<span style=\"font-weight: 400;\"> and<\/span><a href=\"https:\/\/www.ringcentral.com\/us\/en\/blog\/screen-sharing-software\/\"> <span style=\"font-weight: 400;\">screen sharing<\/span><\/a><span style=\"font-weight: 400;\">, and more) for anybody in the team or frankly with external partners you might only work with for a week, a month, or longer. You get to bring the team members you care about into instant virtual meetings. (Keeping in mind that access to talent is the number one issue for startups.***)<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Getting that talent to work together in a collaborative manner requires systems\u2014that thankfully don&#8217;t necessarily require deep pockets. After all, startups generally start with less than $25,000***.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">But the fact that startups don&#8217;t typically have an unlimited wealth of investment is also precisely the reason why key ideas like collaborative technology needs are left so far down the investment stack. (Even though they&#8217;re often the primary engine that drives collaborative success.)\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Now recognize that most startups, even if they don&#8217;t have huge teams, still work with freelancers, investors, partners, and more. Collaboration is an essential component for success\u2014it shouldn&#8217;t be an afterthought.\u00a0<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">Marketing failure and product fit challenges can be partially helped<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">56% of the rationale for startup failure revolves around product fit issues and marketing problems. The lack of a systematic but fluid and agile way to collect, shape, and collaborate thinking about insights from the field means those first few precious moments where the product or service can sink or learn to swim are disproportionately affected by a <\/span><a href=\"https:\/\/www.ringcentral.com\/us\/en\/blog\/lack-of-communication\/\"><span style=\"font-weight: 400;\">lack of collaboration<\/span><\/a><span style=\"font-weight: 400;\">.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Imagine being able to have a simple conversation with your team, share documents, and see each other all at the same time\u2014no matter what device you are on. That&#8217;s what UCaaS brands like <\/span><a href=\"https:\/\/www.ringcentral.com\/startup\"><span style=\"font-weight: 400;\">RingCentral<\/span><\/a><span style=\"font-weight: 400;\"> do, by supporting seamless integration with major platforms like Salesforce and many others to let you bring insights from customers and internal conversations all together in real time.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Startups do fail. Often.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">When you examine the reasons behind those failures, it is easy to ignore the obvious types of technology that can reduce the chances of failure. For example, collaborative technologies can bridge the gaps that cause most of the &#8220;people&#8221; issues.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Cloud-based models (like UCaaS) save money and enable you to easily share files and work together with temporary external experts you&#8217;ll need as a startup.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Remember, the extreme lack of startup capital (remember most do it on less than $25,000) does <\/span><i><span style=\"font-weight: 400;\">not<\/span><\/i><span style=\"font-weight: 400;\"> mean you should ignore technologies you intrinsically know would help you. You can pay as you go. Even when we think about funded startups, the challenges that hurt them are often non-financial issues.\u00a0<\/span><\/p>\n<hr \/>\n<p class=\"p1\">Learn more about how tech startups are using RingCentral to collaborate more effectively with distributed teams and keep customers happy.<\/p>\n<p class=\"p1\">\n<div class=\"download-form-widget standart-download-form\" data-url=\"https:\/\/netstorage.ringcentral.com\/brief\/startup_innovation.pdf\" data-id=\"6a1b6e7247954\" id=\"6a1b6e7247954\">\n\t\t<button tabindex=\"on\"  on=\"tap:6a1b6e7247954.toggleClass(class='open')\" class=\"open-modal-download-action download-form-button\" type=\"submit\">\ud83c\udf1f Download the solution brief<\/button><\/p>\n<div class=\"download-form-modal\">\n<div class=\"download-form-modal-body\">\n<div class=\"download-form-modal-content\">\n<div class=\"download-form-modal-title\">\ud83d\udc40 Get this free solution brief to evaluate if RingCentral might be a good fit for your startup. <\/div>\n<form class=\"download-form SMB\" method=\"post\">\n<div class=\"download-form-part\">\n\t\t\t\t\t\t\t<input class=\"download-form-input\" aria-label=\"Full Name\" aria-required=\"true\" aria-invalid=\"false\" type=\"text\" name=\"fullname\" placeholder=\"Full Name\" data-dl-events-hover=\"true\" data-dl-element=\"text\" data-dl-additional-info=\"download form\">\n\t\t\t\t\t\t<\/div>\n<div class=\"download-form-part\">\n\t\t\t\t\t\t\t<input class=\"download-form-input\" aria-label=\"Email (please enter a work email address)\" aria-required=\"true\" aria-invalid=\"false\" type=\"email\" autocomplete=\"on\" name=\"email\" placeholder=\"Email (please enter a work email address)\" data-dl-events-hover=\"true\" data-dl-element=\"email\" data-dl-additional-info=\"download form\">\n\t\t\t\t\t\t<\/div>\n<div>\n\t\t\t\t\t\t\t<input type=\"hidden\" name=\"popup_form\" value=\"1\">\n\t\t\t\t\t\t<\/div>\n<div><input type=\"hidden\" name=\"Asset_ID__c\" value=\"ODAM-01421\" class=\"download-form-input\"><\/div>\n<div>\n\t\t\t\t\t\t\t<input type=\"hidden\" name=\"Lead_Entry_Source__c\" value=\"RC Blog\" class=\"download-form-input\"\/>\n\t\t\t\t\t\t<\/div>\n<div class=\"download-form-part\">\n\t\t\t\t\t\t\t<button class=\"download-form-submit\" type=\"submit\" data-dl-element=\"button\" data-no-auto-dl=\"true\" data-dl-additional-info=\"download form\" data-dl-name=\"Get it now\">Get it now<\/button>\n\t\t\t\t\t\t<\/div>\n<\/p><\/form>\n<p> \t\t\t\t\t<button on=\"tap:6a1b6e7247954.toggleClass(class='open')\" role=\"button\" tabindex=\"0\"  class=\"download-form-modal-close\"><\/button>\n\t\t\t\t<\/div>\n<div class=\"download-form-modal-thank\">Enjoy! <\/div>\n<\/p><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<\/p>\n<hr \/>\n<h2><span style=\"font-weight: 400;\">Enabling world-class collaboration should be a top priority for startups<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">And using UCaaS as the backbone for that enhanced collaboration should be a natural first step.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Without it, the chances of tripping up and failing on the one thing you <\/span><i><span style=\"font-weight: 400;\">can<\/span><\/i><span style=\"font-weight: 400;\"> control (collaboration) are very high. Why not avoid it if you can?<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">\u00a0<\/span><\/p>\n<hr \/>\n<p><span style=\"font-weight: 400;\">*- Technomatics June 2020<\/span><\/p>\n<p><span style=\"font-weight: 400;\">** <\/span><span style=\"font-weight: 400;\">failory.com\/blog\/startup-failure-rate<\/span><\/p>\n<p><span style=\"font-weight: 400;\">*** &#8211; smallbizgenius.net\/by-the-numbers\/startup-statistics\/#gref<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Digital and cloud-based technologies are common practices for all companies now. The last time a major business application was launched (not as a cloud-based application) was back in 2016. Eighty-four (84%) of small businesses stated in June 2020 that cloud-based applications are essential for their success.*\u00a0 There are 50 million startups each year and 20% &#8230;<\/p>\n","protected":false},"author":1022,"featured_media":44078,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[17901,18669,18722],"tags":[4606,556],"class_list":["post-44077","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business-leadership","category-verticals","category-startups","tag-ucaas","tag-startups"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v19.3 (Yoast SEO v27.2) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>What challenges are terminal for startups\u2014and what could be the cure? | RingCentral Blog<\/title>\n<meta name=\"description\" content=\"Learn about the biggest challenges and obstacles that high-tech startups face today, and how they can be proactive and alleviate these in advance.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.ringcentral.com\/us\/en\/blog\/what-challenges-are-terminal-for-startups-and-what-could-be-the-cure\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"What challenges are terminal for startups\u2014and what could be the cure?\" \/>\n<meta property=\"og:description\" content=\"Learn about the biggest challenges and obstacles that high-tech startups face today, and how they can be proactive and alleviate these in advance.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.ringcentral.com\/us\/en\/blog\/what-challenges-are-terminal-for-startups-and-what-could-be-the-cure\/\" \/>\n<meta property=\"og:site_name\" content=\"RingCentral Blog\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/ringcentral\" \/>\n<meta property=\"article:published_time\" content=\"2020-09-23T13:43:18+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2025-06-27T08:04:36+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.ringcentral.com\/us\/en\/blog\/wp-content\/uploads\/2020\/09\/ucaas-startup.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"930\" \/>\n\t<meta property=\"og:image:height\" content=\"700\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Michael Gale\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@ringcentral\" \/>\n<meta name=\"twitter:site\" content=\"@ringcentral\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Michael Gale\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"5 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/newrcblog.wpengine.com\/us\/en\/blog\/what-challenges-are-terminal-for-startups-and-what-could-be-the-cure\/#article\",\"isPartOf\":{\"@id\":\"\/us\/en\/blog\/what-challenges-are-terminal-for-startups-and-what-could-be-the-cure\/\"},\"author\":{\"name\":\"Michael Gale\",\"@id\":\"https:\/\/newrcblog.wpengine.com\/us\/en\/blog\/#\/schema\/person\/c8c2bf6c597fd29d9bec51f14a1376d1\"},\"headline\":\"What challenges are terminal for startups\u2014and what could be the cure?\",\"datePublished\":\"2020-09-23T13:43:18+00:00\",\"dateModified\":\"2025-06-27T08:04:36+00:00\",\"mainEntityOfPage\":{\"@id\":\"\/us\/en\/blog\/what-challenges-are-terminal-for-startups-and-what-could-be-the-cure\/\"},\"wordCount\":1050,\"publisher\":{\"@id\":\"https:\/\/newrcblog.wpengine.com\/us\/en\/blog\/#organization\"},\"image\":{\"@id\":\"https:\/\/newrcblog.wpengine.com\/us\/en\/blog\/what-challenges-are-terminal-for-startups-and-what-could-be-the-cure\/#primaryimage\"},\"thumbnailUrl\":\"\/us\/en\/blog\/wp-content\/uploads\/2020\/09\/ucaas-startup.jpg\",\"keywords\":[\"(UCaaS)\",\"Startups\"],\"articleSection\":[\"Business &amp; leadership\",\"Industry insights\",\"Startups\"],\"inLanguage\":\"en-US\"},{\"@type\":\"WebPage\",\"@id\":\"\/us\/en\/blog\/what-challenges-are-terminal-for-startups-and-what-could-be-the-cure\/\",\"url\":\"https:\/\/newrcblog.wpengine.com\/us\/en\/blog\/what-challenges-are-terminal-for-startups-and-what-could-be-the-cure\/\",\"name\":\"What challenges are terminal for startups\u2014and what could be the cure? 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He is A Wall Street Journal bestselling author of the global number one selling book on digital transformation, The Digital Helix: Transforming Your Organization\u2019s DNA to Thrive in the Digital Age. He has started and sold two technology companies (SaaS based) and has been a group partner at Monitor Group. 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