Too many startups are the Titanic. The vessel is sinking, but rather than plugging the gap in the hull, everyone is in the process of rearranging deck chairs. Founders, investors, and the startup environment at large are looking at the wrong place. Rather than ensuring that the business model works, they invest time and capital in cosmetic fixes that do not address the issue.
 

The Dysfunction in Startup Sales.
 

One of the simplest places to find this issue is in sales. Sales are a disaster in most startups. Rather than asking why they can't sell, companies spend money on sales training, high-end CRM software, and outsourced lead generation. These may work on the surface, but they don't solve the underlying issue: an unproven business model.
 

It's like attempting to save a sinking ship by polishing the brass. The actual problem runs deeper, but nobody is paying attention because everybody is too busy being distracted by Band-Aid solutions.
 

The Real Problem: No Business Model Testing.
 

The actual issue is that startups are not testing their business models prior to attempting to scale. They think they have product-market fit, that people will pay, and that their unit economics are good—without actually demonstrating it. And then they go out and raise capital, hire a sales force, and launch costly marketing efforts, all on shaky ground.
 

Why Founders Ignore Testing.
 

Most entrepreneurs are idealistic about their concepts, and that idealism can create blind spots. They are so confident in their idea that they figure success will materialize if only they work sufficiently hard. A lot of them don't even know how essential systematic business model testing is, or they perceive it as time-consuming, an unnecessary step which slows things down. Rather, they trust instinct and scaling prematurely, which is a recipe for disaster.
 

Why Investors Aren't Pushing for It?
 

You’d think that VCs and angel investors—who have seen plenty of failed startups—would demand rigorous business model testing. But most investors are more focused on fast growth. They want to see traction, user acquisition, and revenue spikes, even if the underlying business model is unproven. There’s pressure to scale quickly and capture market share, and that often means encouraging startups to sprint before they’ve learned to walk.
 

The Ecosystem's Contribution to the Problem:
 

It's not only founders and investors—the entire startup ecosystem is contributing to this issue. Accelerators and incubators place more value on pitching, networking, and fundraising than on actual business validation. Founders are instructed in how to prepare the ideal investor pitch, but not how to de-risk their business models. The culture incentivizes hype and storytelling rather than hard facts, creating a cycle of poorly tested businesses.
 

The Solution: Making Business Model Testing a Priority.
 

If startups are going to cease failing so calamitously, they must prioritize business model testing. Which means:
 

1. Beginning with hypotheses: Using the business model as assumptions to test rather than something to blindly execute.
    

2. Conversing with actual customers early and often: Learning what they actually want, if they will pay, and at what price.
    

3. Scaling in phases: Scaling only once there's genuine evidence the business model is valid—not earlier.
    

4. Investors wising up: VCs and angels must put an end to rewarding premature scaling and instead require strict validation first.
    

A culture shift: The startup ecosystem needs to appreciate evidence-based decision-making over hype.
 

Startups don't fail due to lack of passion, talent, or funding. They fail because they grow untested business models. If the startup community continues to ignore this fact, failure rates will remain sky-high. It's time to stop rearranging the deck chairs and begin solving the actual problem—before the ship sinks.