Tech Startup Success: 20 Entrepreneurs’ Advice About Common Challenges

Launching a startup is particularly challenging in the tech sector—recent studies show a 63% failure rate among tech startups. Entrepreneurs attempting to break into the tech industry are up against a variety of obstacles, including high launch costs, intense competition and constant evolution—a great solution today may be outdated tomorrow.

Even though the odds seem to be stacked against them, many tech entrepreneurs do in fact go on to build long-lasting, successful companies—including many of the members of Forbes Technology Council. Below, 20 of them share a significant challenge they faced in their startup journey and how they overcame it. Their advice and experience can provide an invaluable guide for the next generation of tech visionaries.

1. Determining Feature Priority

As a technical founder, understanding the priority of features to be launched—instead of trying to include all features in the MVP—is essential. I recommend basing this decision on customer validation, using their feedback to select the top two or three features. Launch these quickly to gather input, and avoid trying to make the product look fancy or complete. The focus should be on launching so customers can try and test the product. - Shweta Agrawal, Boston New Technology

2. Finding Team Members Who Are Excited About The Company’s Mission

Hiring individuals for their grit and passion, rather than just for their skills, is crucial. In the early stages, we made hires based on impressive résumés, but as first-time founders, we underestimated the challenges of building a company from scratch. The people who stick with you through tough times and collaborate effectively are those who are genuinely excited about the company’s mission. - Edward Chiu, Catalyst

3. Achieving Product-Market Fit

As a tech startup founder, my biggest challenge was achieving product-market fit and building a loyal user base. First-time entrepreneurs should invest in market research and engage with potential customers to refine their PMF. Develop an MVP to test your idea and establish a clear go-to-market strategy. Surround yourself with the right people, prioritize transparency and build trust with users to foster long-term relationships and drive growth. - Shyam Alok, Object Technology Solutions, Inc.

4. Avoiding Overengineering

Avoid overengineering the first product. It’s all too easy to waste months building “nice to have” features while your core offering still isn’t solving the basic customer problem. I recommend focusing ruthlessly on building one truly valuable item before adding extras. - Adam Ennamli, General Bank of Canada

5. Being Customer-Centric

One of the biggest challenges in launching a tech startup is being customer-centric when building the product. Identify and analyze your market and competitors and determine the value-add of your product. You can build great technology, but if it doesn’t solve a real problem or meet a market demand, it won’t succeed. My advice is to focus early on validating your idea with potential customers, and be agile. - Archaana Pattabhii, Citigroup

6. Staying Focused On The Long-Term Vision

We’ve had an uncommon startup journey, having never pivoted in terms of strategy, product or mission. We’ve always had a clear long-term vision, but we knew getting there would take a lot of time. My advice for entrepreneurs? Understand you will always have a lot to learn, be willing to compromise and don’t be afraid to let go of past achievements to pursue future success. - Kristjan Vilosius, Katana Cloud Inventory

7. Breaking Into A Crowded Sector

The biggest challenge in launching my tech startup was achieving product-market fit in a crowded space. My advice to first-time entrepreneurs: Deeply understand your customers’ needs, stay flexible and be ready to pivot when necessary. Build a passionate, resilient team, and embrace continuous learning. Persistence and adaptability are crucial to overcoming initial hurdles and driving success. - Savitri Sagar, Kenzo Infotech

8. Launching Into A Different Market Segment

My biggest challenge as a tech entrepreneur was to launch into a different market segment. We had a great experience with enterprise software, but crossing over to mid-market was challenging. My best advice is to start with a technology area and market segment you know well. Once you have succeeded there, you will have the ability to move laterally. - Poornima DeBolle, Menlo Security

9. Determining The Company’s USP

Looking to start a tech company? Fully understand the tech you offer and how it uniquely solves a vital issue in the industry. What will make your solution different? Then, ensure you have access to the fundamental building blocks of your distinguishable product. In my case, access to high-quality and proprietary data was (and remains) essential to the success of our AI software. - Vall Herard, Saifr

10. Overcoming Resistance To Change

My biggest challenge was overcoming resistance to change in established industries. The key is persistence. Focus on solving real problems and proving value with tangible results. For first-time entrepreneurs: Listen to your customers, iterate quickly and stay committed to your vision—even when the path gets tough. - Eddy Azad, Parsec Automation

11. Relentlessly Focusing On Quality

One major challenge for us was not just proving our deepfake detection tech creates value, but also ensuring it delivers top-tier results. My advice: Once you know there’s demand, focus relentlessly on quality. Your tech should outperform expectations and solve a problem thoroughly. Satisfied users will be your biggest asset. They drive your credibility and fuel growth through trust and word-of-mouth. - Parya Lotfi, DuckDuckGoose

12. Filtering Out The ‘Noise’

It’s easy to get caught up in outside noise from investors and the tech industry, but you must stay focused on developing a core product that solves a customer need. Build the smallest product you can to prove your idea and validate early product-market fit with customers. But don’t be afraid to balance that quick iteration with your strong convictions about what’s right for the market. - Michael Zuercher, Prismatic

13. Securing Needed Funds

One of the biggest challenges for a tech startup is securing the necessary funds. Here are some tips: Start with research, and develop a solid business plan. Build an MVP and a strong network to show traction. Be persistent and resilient, and always be willing to consider alternative funding sources. - Ramasankar Molleti, Options Clearing Corporation (OCC)

14. Keeping Up With The Pace Of Change

In today’s world, keeping up with technology is one of the most prominent challenges entrepreneurs face. In the generative AI world, the pace of technological advancement is so fast that, before you build an idea, the technology used will become outdated. Entrepreneurs must focus on solving business problems rather than building new technology. And make sure the technology is swappable as it advances. - Ram Palaniappan, TEKsystems Global Services LLC

15. Introducing Cutting-Edge Tech Into A Traditional Industry

Our biggest challenge was introducing an emerging technology into a very traditional industry—we had to warm up the market before we could reach product-market fit. This required patience and many product iterations as we learned about the industry complexities. I would advise a first-time tech entrepreneur not to give up too quickly, because the first iteration is rarely the correct one. - Katerina Axelsson, Tastry

16. Staying Focused On The Main Solution

As a founder, one of my biggest challenges was staying focused on solving a specific customer problem rather than getting distracted by various opportunities or features. My advice to first-time founders is to nail product-market fit early by deeply understanding your users’ needs, iterating fast and saying “no” to distractions. Focus on delivering real value, and everything else will follow. - Ulrik Stig Hansen, Encord

17. Assessing Specific Leadership Skills

The biggest challenge for many tech entrepreneurs is understanding what great leadership looks like in each area or department of the business. Unless you have worked closely with sales leaders, marketing leaders, finance leaders and so on, it is very hard to assess how well they are doing their jobs! - Steve Carter, Nucleus Security

18. Understanding Your Own Weaknesses

Many first-time founders are amazing technologists with ideas that will change the world. However, more often than not, they are not good marketers, sales executives, accountants and administrators. My advice would be to surround yourself with people who lift you up where you are not strong. Build the tech and change the world—just do it with a strong team. - Ray Culver, CWsolutions Group

19. Focusing On Customers Rather Than Investors

The biggest challenge for me was overcoming a tendency to focus too much on investors and not enough on customers. My advice: Talk to your customers more than your investors. If your customers love what you’re building, investors will follow. Many startups focus on pleasing investors, but if you prioritize satisfying customers, everything else will fall into place. - Yaamini Barathi Mohan, Dell Technologies

20. Managing Scarce Resources

The biggest lesson? Start lean. Don’t spend every resource on building every feature in your vision. Resources are limited, and the runway is short. Hire selectively—treat hires as extensions of yourself—and focus on core functions that drive business value. Scale gradually, moving closer to your full vision as you grow. - Raj Jhaveri, Greenlane™ Infrastructure