Starting a New Biz in 2020? 5 Reasons Why Startups With Great Technology Fail

Interview Phil Crowley.

Philip P. Crowley, is a dedicated attorney who has been handling legal matters for pharmaceutical, biomedical, medical devices, information technology and other technology companies for over 30 years. He has also spent nearly 25 years on the board of trustees of the Stevens Institute of Technology, with substantial involvement in the oversight of academic innovation and entrepreneurship.

Talking Points from Phil Crowley on How Startups
With Great Technology Can Often Fail

Having great “ground-breaking” technology is one requirement for success in the tech world. But there are obstacles to success that entrepreneurs ignore at their peril. Here are five of them:

  • Failure to form and appropriately use a limited liability vehicle, a corporation or limited liability company—without this the founders put their own personal assets at risk. Losing that “seed capital” (e.g., savings and checking accounts) can doom an enterprise.

  • Failure to have employees and contractors execute written agreements granting to the company ownership of all the intellectual property (e.g., designs, ideas, inventions, computer software) they create on behalf of the company.

  • Failure to attract and motivate a competent team with complementary skills. No one person can do everything needed for business success. As the business and the technology grow and develop, the founders need to have available skill sets above and beyond those that got them to their current level.

  • Giving too generous terms to early investors, permitting them to veto actions needed for company growth.

  • Failure to engage with an experienced business lawyer early enough in the process to identify and avoid unwanted liabilities and to put in place the agreements that will protect the company’s vital interests.

    More on the subject of Entrepreneurs:

While starting a business can be an exciting and rewarding endeavor, it can also be a stressful and complex process. Entrepreneurs in New York may encounter a variety of challenges as they attempt to push their companies to greater heights and many of these issues may exist right from the start. Although business owners may feel they already have a great deal on their plates, addressing certain concerns early on could prove essential to avoiding regret in the future.

According to experts, one of the first issues a prospective business owner should consider addressing pertains to his or her motivations. Achieving clarity on the desired direction or purpose of the company could act as a strong foundation for building a thriving enterprise. Since the future of a company may also be fueled by its success, forming a strategy to promote growth may also be vital to paving a path to prosperity.

While business owners may put a great deal of time and effort into achieving their goals, experts indicate that finding ways to maintain a work-life balance is also essential. Experts also suggest that entrepreneurs may benefit from looking ahead and developing a plan on what they wish to happen in the future. Regardless of whether one wishes to sell the business or pass it down to loved ones, knowledge of these intentions could have an influence on the decisions one makes about the direction of the company.

Understanding every crucial topic to address when starting a business can be an intimidating process. Fortunately, one doesn’t have to go through this alone and by speaking with someone with experience in such matters, entrepreneurs in New York could obtain much-needed assistance in navigating the process. An attorney can assist a person in making informed decisions about the direction of his or her company and provide guidance on how to handle any issues that arise in the future.


Available for Interviews: Phil Crowley.

Philip P. Crowley is an attorney for over 30 years who is passionate about helping grow technology companies seize opportunities and avoid expensive legal mistakes as they make ideas come to fruition. Mr. Crowley has also spent nearly 25 years on the board of trustees of the Stevens Institute of Technology, with substantial involvement in the oversight of academic innovation and entrepreneurship. He is the Managing Partner at the Law Office of Philip P. Crowley, LLC. Visit Phil Crowley on the web at


Jo Allison
PR Managing Editor
Success in Media, Inc.

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