The statistics say that only 1 out of 10 startups, which at the beginning have the same chances and are launched within a similar period of time, achieve success and meet the expectations of their founders. Why does this happen? This state of affairs can be explained quite logically and even in a systematic way. Do you want to know what kind of explanation? The answer is in this article.
At first glance
If you search well, you can find a lot of articles on the internet, which, in fact, talk about the same thing – why some companies shoot at the market and hit the crest of the wave, while others remain at the broken trough. Combining all the reasons that mentors and startup gurus are writing about, you can make something like a list of the most important reasons for failure.
That’s not the idea. As a rule, new projects fail because their idea is already hammered, not perfect or not fully formed. Novices grab the first idea that they see and think it is brilliant, and start to implement it without prior market research and communication with potential customers. Before you start, it is worth determining the target audience, choose from it a few people who are ready to test your products or services in a test mode, collect their opinions, make adjustments and only then make a step towards the realities of the market. In the future it is easy to check the statistics with the help of Mageworx.
Yes, mentors advise not to produce a completely raw product, but you should not delay it either. A startup needs to start working if he or she has a sample, a minimal version with limited functionality, which, at the same time, will be able to demonstrate to the audience which project is planned for the future. As a rule, such preparation does not require much effort, resources and time, but it will help to determine whether there is a real demand and the probability of making a profit.
Lack of a team
Investors and incubators are wary of projects where only one person is involved. Most often, such startups are simply disguised in the selection process. The thing is that one person will not be able to cope with all the work actually. Plus, motivating yourself is always harder than motivating yourself in a team.
Sometimes it is possible to hear a recommendation that a startup is better to do with friends and to take only proven people as partners. In part, this is true, and in the world today you can meet companies founded by two girlfriends or, for example, classmates. These projects are successfully developing and making profits. But the opinion that it is better not to start a business with relatives and friends, too, no one has canceled. You can lose a loved one and the work of a lifetime. It is really better to take people you know to a startup, but they should be professionals in their field. Otherwise, the whole idea risks getting burned out.
Absence of a mentor
The idea of a startup can be original and successful, but it doesn’t represent anything without proper implementation. And in these questions, you can’t do without a mentor who will tell you, help you and introduce you to the right people. By the way, it is very difficult to achieve something without the last point in the world of business and startups.
Underestimation of opponents
A startup should never forget that neighboring companies do not take a rest either. We should not stop. Introducing new services, developing and constantly declaring itself, the company ensures its place in the minds of consumers. And the lack of news is a reason to be forgotten.
Although they say that it is better to build a company without attracting funding, but in the case of technological start-ups that require their own development, it is almost impossible. That’s why every founder needs to know exactly how much he or she needs in order to move forward.
Business model problems. It is necessary to imagine and describe how the company will work long before its release on the market. A business model is worth and must be developed. It will be remodeled at least a hundred times, but it will finally help to get to the goal.