• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia

Trendingnow

1

Shark Tank's Kevin O'Leary says if he were 25 today, he'd chase these two booming opportunities in the world of AI

2

Even as Elon Musk calls philanthropy ‘very hard,’ everyday Americans gave a record $617 billion—despite feeling the squeeze over the cost of living

3

Egg companies made $1.22 billion in profit off a $6 carton — now they’re buying their way out of a price-fixing case with 53 million donated eggs

1

Shark Tank's Kevin O'Leary says if he were 25 today, he'd chase these two booming opportunities in the world of AI

2

Even as Elon Musk calls philanthropy ‘very hard,’ everyday Americans gave a record $617 billion—despite feeling the squeeze over the cost of living

3

Egg companies made $1.22 billion in profit off a $6 carton — now they’re buying their way out of a price-fixing case with 53 million donated eggs
Commentary

This Is When You Should Ditch Your Startup Idea

By
Michael Maven
Michael Maven
and
Bethany Cianciolo
Bethany Cianciolo
Down Arrow Button Icon
By
Michael Maven
Michael Maven
and
Bethany Cianciolo
Bethany Cianciolo
Down Arrow Button Icon
January 12, 2016, 5:33 PM ET
Courtesy of Carter & Kingsley
Add Fortune on Google for similar content.

The Entrepreneur Insider network is an online community where the most thoughtful and influential people in America’s startup scene contribute answers to timely questions about entrepreneurship and careers. Today’s answer to the question “How do you know it’s time to drop your startup idea?” is written by Michael Maven, founder of Carter & Kingsley.

The best way for founders to begin a startup’s life is to look for a positive reflection from the market about their ideas.

Startups often fail because the team members neglect to test the market for validation of their idea and don’t look for a measured demand for their solution. Instead, they begin building their product on day one.

If you’re in a position where you’re considering dropping your startup idea, it’s likely you started building your product before you knew there was truly a demand for your solution.

So what now? Firstly, where do you stand? If your burn rate brings you too close to the end of your company life, you may not have many more options. More funding is an option at this point, but you’ll have to explain what you’re going to do differently.

If you do have room to operate, that’s great. Ideally, you need to quickly switch to a model where your progress is measured by what you’re learning about your market. Stop measuring your progress by looking at how much of your product was built today, because you clearly don’t know if there’s a fit just yet.

See also: This Is the Best Way to Keep Your Startup From Going Under

Unfortunately, I am no stranger to a failing business—two, in fact. But how did I know they weren’t going anywhere?

With my first business, I discovered I was just in love with my own idea. Looking at monthly figures, there wasn’t much interest after I introduced the product to the market. Although I was surprised (because surely my own idea was the greatest thing ever), I couldn’t deny the truth staring me in the face.

With my second, I discovered I wasn’t really offering a perceived difference with my product. I was just one of a thousand other me-too businesses offering a service that already existed, at least in the customers’minds.

In both of these cases, no amount of passion or determination would have saved the business. I was eventually forced to pay attention to the numbers and remain objective, even though it was painful to admit I was failing.

It’s extremely important for every company to have a dashboard that shows up-to-date progress. You need your team to buy in and agree that future decisions are driven by the data on your dashboard—not skewed by intangible things like passion, beliefs, and gut feelings based on the latest TechCrunch article.

You should also know what your numbers are supposed to look like, and make sure your current day progress matches them. For example, if you need to have conversions of 8% but you’re only able to hit 3% after multiple product development changes, then you know it’s time to drop your idea.

Fortunately, I started young, so after my failures and more experience, I finally built two companies that had healthy growth.

My team and I built CatchAndRetain by doing something that many teams have done to turn their new companies into sustainable businesses. We focused on a real-world problem that we were experiencing first hand: turning current website visitors into more revenue.

We had a network of product sites that we were buying traffic to. Although we were profitable, we were paying for advertising and had a 53% bounce rate. We had no real system to catch prospective customers and bring them back to our website either, and we weren’t working on increasing our retention rate.

Essentially, we were throwing away half of our advertising budget, which left us in a much weaker position against our competition.

 

So we spoke to a few different organizations and realized this was a common problem. But more importantly, companies were willing to pay for a measurable solution that worked to overcome these problems. So we ended up developing a managed solution that successfully converts more website visitors into tangible sales by reducing all of the previous issues we’d identified on our own websites. We even managed to secure some early funding in return for early access to our developed solution, which ended up working.

But we only built a solution after we learned about our market and the problems that potential customers were willing to pay to remove. It’s never too late to do this.

So even if you’re considering dropping your startup idea, you may only need to make a few changes to your strategy in order to find a good market fit.

Michael Maven is the founder of Carter & Kingsley, the market leader in developing bespoke profit growth strategies for investor portfolios and existing businesses, and also the founder and developer of the ECARR System used to power CatchAndRetain.com, an automated ‘hands off’ system which measurably turns more website visitors into customers.

Read all responses to the Entrepreneur Insider question: How do you know it’s time to drop your startup idea?

How to Prevent Your New Business From Becoming a Complete Failure by Linda Darragh, professor of entrepreneurial practice at the Kellogg School of Management at Northwestern University.

Here’s How You Develop a Successful Business Idea by Mark Caron, investor and former BMobilized CEO.

What the Most Successful Founders Understand About Business by Vineet Madan, founder and CEO of Junction Education.

This Is Why So Many Startups Aren’t Successful by Avery Roth, founder and CEO of The Startup Consulting Group.

Your Personality Could Be the Reason Your Business Is Failing by Suneera Madhani, founder and CEO of Fattmerchant.

About the Authors
By Michael Maven
See full bioRight Arrow Button Icon
By Bethany Cianciolo
See full bioRight Arrow Button Icon
Add Fortune on Google for similar content.

Latest in Commentary

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • World's Most Admired Companies
  • See All Rankings
  • Lists Calendar
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
  • Group Subscriptions
About Us
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • Pinterest icon

Latest in Commentary

cc
CommentaryEducation
Former Trump official: Washington finally let Pell Grants pay for welding school, then buried the idea in 85 pages of red tape
By Caroline CasagrandeJuly 6, 2026
56 minutes ago
k
CommentaryBox office
How Hollywood’s youngest filmmakers are exposing Gen Z’s real problem with AI
By Reid LitmanJuly 5, 2026
22 hours ago
k
Commentary250 Years of Innovation
Media leadership unity in defying Trump’s assault on free speech: standing tall against historic comparisons
By Jeffrey Sonnenfeld, Jeff Bewkes, Kay Koplovitz, Tom Glocer and Marvin KalbJuly 4, 2026
2 days ago
ds
CommentarySoftware
I argued with the father of open source for 2 years. Now the AI fight is the same — only bigger
By David SiegelJuly 3, 2026
3 days ago
ashok
Commentary250 Years of Innovation
The greatest startup in history: What we can learn from America’s founders at today’s AI frontier
By Ashok N. SrivastavaJuly 3, 2026
3 days ago
2
Commentary250 Years of Innovation
America’s secret weapon isn’t just innovation — It’s the freedom to fail
By Keith KrachJuly 3, 2026
3 days ago

Most Popular

Shark Tank's Kevin O'Leary says if he were 25 today, he'd chase these two booming opportunities in the world of AI
AI
Shark Tank's Kevin O'Leary says if he were 25 today, he'd chase these two booming opportunities in the world of AI
By Marco Quiroz-GutierrezJuly 5, 2026
20 hours ago
Even as Elon Musk calls philanthropy ‘very hard,’ everyday Americans gave a record $617 billion—despite feeling the squeeze over the cost of living
Success
Even as Elon Musk calls philanthropy ‘very hard,’ everyday Americans gave a record $617 billion—despite feeling the squeeze over the cost of living
By Preston ForeJuly 4, 2026
2 days ago
Egg companies made $1.22 billion in profit off a $6 carton — now they’re buying their way out of a price-fixing case with 53 million donated eggs
Law
Egg companies made $1.22 billion in profit off a $6 carton — now they’re buying their way out of a price-fixing case with 53 million donated eggs
By Wyatte Grantham-Philips and The Associated PressJuly 2, 2026
4 days ago
The stock market is about to suffer a 'snapback' and will lose much of this year's gains as 'speculation is hitting extreme levels,' BofA warns
Investing
The stock market is about to suffer a 'snapback' and will lose much of this year's gains as 'speculation is hitting extreme levels,' BofA warns
By Jason MaJuly 5, 2026
14 hours ago
Meet the Zillennials: The luckiest micro-generation in the workforce, born between 1993 and 1998
AI
Meet the Zillennials: The luckiest micro-generation in the workforce, born between 1993 and 1998
By Nick LichtenbergJuly 3, 2026
3 days ago
Mark Zuckerberg takes business calls on a jet ski wearing his $800 Meta glasses—and insists 'the other person could not tell'
Big Tech
Mark Zuckerberg takes business calls on a jet ski wearing his $800 Meta glasses—and insists 'the other person could not tell'
By Sydney LakeJuly 5, 2026
22 hours ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.