🚨 How entrepreneurs can avoid 90% of startup failure traps

1️⃣ Trap 1: There is no market demand for the product 💥

Common Situations

• The founder is too obsessed with his idea, thinking that "someone must want it", but the market does not need it at all.
• The Hong Kong market is small. If you don't address the pain points, your product will quickly lose customers.

How to deal with it

• Market validation: Ask potential customers first to see if they are willing to pay.
• Use MVP (minimum viable product) ⚡: Don’t spend a lot of money at the beginning, test the reaction first
• Talk directly to users: Hong Kong people are quick to react, so direct feedback is the most valuable.

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2️⃣ Trap 2: Cash flow interruption 💸

Common Situations

• Too dependent on investment, no income model
• Poor cost control means we are burning money faster than we earn it
• Hong Kong has high rents and labor costs, making it particularly prone to capital chain problems.

How to deal with it

• Maintain healthy cash flow💰: Ensure at least 12 months of working capital
• Design a pricing model early: Don’t rely solely on free trials; test whether customers are willing to pay.
• Cost reduction: Shared offices, outsourcing some work

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3️⃣ Trap 3: Team Issues 🤯

Common Situations

• The founders had different philosophies and internal strife.
• Skill overlap and lack of complementarity
• The team has no experience and does not know how to solve problems when they arise

How to deal with it

• The team composition should be complementary: for example, technology + marketing + operations
• Sign the equity agreement in advance📄: Avoid disputes later
• Establish transparent communication: review regularly and speak up if there are any issues

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4️⃣ Trap 4: Over-reliance on advertising 📢

Common Situations

• Initially, they spent money on advertising but did not build a brand or community.
• Once the advertisement stops, the customer base will be cut off immediately.

How to deal with it

• Create real user value🌟: Customers will recommend it to their friends if they find it useful
• Build a community: For example, a Telegram group or Instagram page to strengthen user relationships
• Advertising is only a supplement: it cannot be the only channel for growth

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5️⃣ Trap 5: Ignoring User Experience 🖥️

Common Situations

• The product has many functions, but the operation is complicated
• Hong Kong people value their time. If they don’t use it well, they will immediately switch to competitors.

How to deal with it

• Keep it simple: UI/UX should be simple and intuitive
• Continue to collect user feedback📊
• Do user testing: Observe how real users use the product

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6️⃣ Trap 6: Blind Expansion🏢

Common Situations

• Rushing to expand before finding product-market fit
• Renting a large office, hiring too many people, and finally being unable to sustain it

How to deal with it

• Start small and stable: Focus on a niche market
• Verify with data: Consider expansion first when there is stable user growth
• Always be ready to shrink: stay flexible

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7️⃣ Trap 7: Ignoring regulations and compliance 📜

Common Situations

• FinTech and new medical products are launched without understanding the law.
• Hong Kong's strict regulations make it easy to step into trouble

How to deal with it

• Study relevant regulations as soon as possible ⚖️
• Find a consultant or lawyer to ask clearly 🧑⚖️
• Maintain transparency: Avoid misleading consumers

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8️⃣ Trap 8: No core competitiveness🥱

Common Situations

• Products are easily copied and price wars are a losing proposition
• The Hong Kong market is small, and once competition arises, it is easy to be eliminated.

How to deal with it

• Establish differentiation: It doesn’t necessarily rely on technology, it can be service, brand, community
• Continuous innovation: Don’t stop at the first generation of products
• Strengthen customer relationships ❤️: Make it difficult for competitors to replace

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9️⃣ Trap 9: Founder Overoptimism🌈

Common Situations

• Always thinking "I'm sure it will work" and ignoring market signals
• No Plan B

How to deal with it

• Stay data-driven: Use data to validate hypotheses
• Regular review: admit mistakes and pivot quickly
• Have a backup plan 🔄: For example, if your income doesn’t meet the requirements, how can you narrow down your scope?

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🔟 Trap 10: Neglecting Mental Health🧠

Common Situations

• The founder was overworked and suffered from chronic stress.
• Low team morale affects performance

How to deal with it

• Maintain work-life balance ⚖️
• Building a supportive culture within the team 🤗
• Seek help from mentors or communities when appropriate 🙋

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🎯 Editor's Summary

Starting a business is a life-or-death struggle, and we're not kidding. 90% of startups fail, primarily due to:

• No market demand
• Cash flow problems
• Internal conflicts within the team
• Over-reliance on advertising
• Ignoring user experience

But if you can plan ahead, stay flexible, and focus on solving real problems, your failure rate will be greatly reduced. ✨

I sincerely believe that the advantages of Hong Kong entrepreneurs are "speed, flexibility, and internationalization." As long as they avoid the above pitfalls and take advantage of new trends such as AI and the green economy, there are still many opportunities. 🚀

🏙️ Hong Kong Startup Survival Rules Checklist

1️⃣ Market Demand

✅ Do the products/services truly address the pain points of Hong Kong people?
✅ Have you conducted user interviews or small tests?
✅ Have you set a clear ideal customer group (persona)?

👉 Hong Kong people's biggest pain points: lack of time, limited space, and high costs. Your product should address these issues.

2️⃣ Financial Management

✅ Can the cash flow support at least 12 months?
✅ Is there a Plan B source of income?
✅ Have you exhausted low-cost resources (shared offices, outsourcing, AI tools)?

👉 Hong Kong's entrepreneurial environment is high-cost, and controlling expenses is crucial.

3️⃣ Team Building

✅ Are the team's skills complementary? (Technology + Marketing + Operations)
✅ Is the equity agreement clearly written?
✅ Does the team have regular communication and review?

👉 Hong Kong's entrepreneurial community is small, and bad reputation spreads quickly, so a stable team is very important.

4️⃣ User Experience

✅ Is the product easy to use?
✅ Have you done user testing?
✅ Are you continuously collecting suggestions for improvement?

👉 Hong Kong people are impatient. If they find something troublesome once they use it, they will quickly go to competitors.

5️⃣ Promotion and Growth

✅ Are there any growth methods other than advertising? (e.g. social media, collaboration, word of mouth)
✅ Have you established a brand story?
✅ Is there a referral mechanism designed?

👉 Advertising can create a short-term buzz, but you can’t rely on it in the long term.

6️⃣ Regulations and Compliance

✅ Have you studied the relevant industry regulations clearly?
✅ Have you prepared contracts, terms and conditions, and privacy policies?
✅ Is there any consultant or lawyer I can ask?

👉 Hong Kong has a strict regulatory environment, especially in finance, healthcare, and education, and it's easy to get caught if you're not careful.

7️⃣ Expansion Strategy

✅ Have you found product-market fit before expanding?
✅ Is the expansion strategy supported by data?
✅ Is there any flexibility left so that it can be retracted at any time?

👉 The Hong Kong market is small, and expanding too quickly would be very dangerous. It is best to start small and steady.

8️⃣ Mental Health

✅ Have you arranged time for rest and exercise?
✅ Has the team established a supportive culture?
✅ Is there a mentor/community I can talk to?

👉 The entrepreneurial environment in Hong Kong is very stressful, and founder burnout is a common cause of failure.

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🎯 Editor's Summary

This checklist is a must-have for entrepreneurship in Hong Kong :

• The market needs real demand
• Cash flow must be stable
• Teams need to complement each other
• The user experience should be simple
• Promotion should be diversified
• Regulations must be clear
• Expansion must be stable
• Mental health

My suggestion: Use this checklist to review your startup every month to see if it’s deviating from the right track. This will greatly increase your chances of survival.