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Why do startups fail?

BingMag.com Why do <b>startups</b> fail?

Let me start this text with a short story. When I was a kid, on the way home from school, I bet my friends that I could throw the ball into the basketball hoop from here. Of course, it was hard work. But I usually succeeded and won! My poor friends did not know that I had practiced hundreds, if not thousands, of times to throw well from here. I was already completely immersed in it, and I knew exactly how to throw the ball, with what power, and where to hit the basket board to get into the basket.

We will return to this story later. You must have heard it said that about 95% (something like that) of startups fail. Of course, it may not matter if they fail, but the more important part is knowing why they fail. Experienced people in this field who have experience in the stages of brainstorming, product demonstration, pilot launches, etc. believe that the failure of startups is not only because of their difficulty and complexity.

Of course, the difficulty of setting up and managing a startup The app is really obvious. But often the founders themselves make their success impossible. You are doomed to fail from day one, because you have not done so before.

Of course, this is not your fault. Most people think that the idea of a startup is fundamentally wrong. What is the right way? In our opinion, the right way is intuitive and sensory! You will not have much opportunity to get involved in every project; Therefore, you only need to identify the ones that you have a very significant advantage in doing. Just like the basketball throw I told you at the beginning.

Here are some handy ways to identify or build your core advantage

Special ideas are your biggest enemy

The world of startups is weird. When you are active in this field, you may be asked to sign a non-disclosure agreement at appointments. Many people think that their idea is very special and pure, and if no one has ever implemented it, it is because the idea did not cross their mind at all! That's why it has to be implemented.

We call these ideas "whispering ideas." Because their owners are always afraid that someone will hear their idea and implement it sooner than themselves. They try not to express their ideas anywhere. If they need to retell it, they will ask you to sign a non-disclosure agreement. All they think about is that we can implement the idea before it's too late. They probably do not ask themselves at all that the idea may have actually occurred to someone but for some reason did not carry it out.

He thinks, and this is the biggest danger that threatens such startups and causes their startups to fail. Because they have only tried to implement their "special" idea as soon as possible, without paying enough attention to the risks or other matters and aspects.

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There are many startups that did not have very clean ideas, but planned and implemented everything well and succeeded. In the field of startups, logic and patience are important elements. Your idea should be logical in every way, you should not rush to implement and introduce it, and most importantly, do not forget that the growth of a startup is usually gradual.

This is the most important difference whenever you imagine "No one has thought of this idea yet," you probably have a "whispering idea" in your mind, and it's time to think a little more carefully about its various aspects.

BingMag.com Why do <b>startups</b> fail?

Your friend's hourglass idea

Every startup should be thought of as an hourglass full of sand. Exactly from the moment you express your idea and start implementing it, the hourglass turns upside down and the sand starts to move. These sands are actually the amount of time you have to build something meaningful; Therefore, the amount of sand in your hourglass will be different. This amount will depend on many issues such as investors, founder, your team's scope of expertise, market, available and required capital, customers and many other factors. The more benefits you have in each of these categories, the greater the amount of sand in your hourglass, and therefore the more time you have.

The primary goal of any startup is to increase your initial amount of sand as much as possible They may do more. This is exactly the opposite of the previous discussion of "whispering ideas." In this discussion, you are not choosing an idea that you have to implement very quickly and as soon as possible. You need to come up with something out of the ordinary, and work on it. Your trump card is when your hourglass has more sand than anyone else who wants to start this idea. If you are the only one who can implement this idea well, there is no need to hide the idea or rush to implement it, and your startup will be less likely to fail.

This approach may be 2 It begs the question:

  • Why do we need so much time?

You may be wondering why you insist on Do we have a slower and more patient start-up? Until now, you may have thought that you should do everything quickly.

In our opinion, the slow progress of a startup is much better. Because your initial product will most likely be wrong. Your second, third, or even fourth product may not be complete. You will still have to change your function. For some startups, it may take several years for them to finally find their place in the market and rebuild their product, taking into account market conditions, competitors and customers. Even the strongest startups may have experienced such days.

Hourglasses give you a chance to make mistakes. Once you have a strong expertise and team, you will no longer need to spend precious time getting to know the nuances of the market, competitors and target community. In fact, you know more about this than anyone else, and you spend your time discovering more difficult and unpredictable things.

Because you know how to segment customers and know how small products add value. Find; You grow slowly, you build your product by emphasizing a small group of people so that this small group will fall in love with it, then you slowly expand the product. The chances of your startup failing are greatly reduced.

People with "whispering ideas" can not go through these steps. They will soon realize that they do not have enough time to learn all these small but very important things. They have no information about their market, competitors and potential customers; Therefore, they can not design small, simple and efficient products; So they try to make something big and very special and hope it resonates. Our answer to the first question will probably lead to another question in your mind that we will answer.

  • Do these mean that we should just start in our area of expertise? Startups?

If you want to have the best chance of success; Yes!

As the founder of a startup, you must always be learning. In our opinion, the founders of a startup should only implement ideas in which they have a lot of expertise. But of course this does not always happen. You have a lot to learn while building a startup. You need to focus your energy on learning the nuances of a space, not the space itself.

Of course, you can hire experts. You may know enough about the potential market for a luncheon. If you want to reduce the chances of your startup failing and gain more advantage, it is best to partner with someone who has sufficient knowledge and experience in the field of food resources and supply chain; Therefore, you no longer need to think about procuring materials yourself, you will focus all your knowledge and experience and of course your time on knowing more about the target market.

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The startup idea you come up with should be one that you have been subconsciously preparing for all these years. Starting a startup should be based on your abilities, not just finding an important gap and idea in the market. What do you have to think about in what you are so strong and unique about? What do you know that other people do not know? When a startup idea comes to mind, the first question you need to ask yourself is, "Why am I the best person to implement this idea?" Are you really the best person?

So, if an idea comes to your mind and you think it is so special that you do not want anyone to notice it, you lower your voice and be careful when expressing it, It is better to forget that idea and startup. Ideas like these never work, and the chances of such startups failing are very high. But there is no doubt that there is something in the world that you are the best person to do! Try to find it and develop your startup accordingly.

Source: Fastcomany

Tags: startups, fail?

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