Failure is a part of life and as a resilient entrepreneur, you probably understand that better than anyone. Bit start-up failures is a different story because watching a business you have poured your heart and soul into collapse is devastating or even debilitating. Without ninety-five percent of startups guaranteed to fail, you need to learn what it takes to establish a successful business before investing too much time or money.
Successful is nevertheless guaranteed but the following tips, inspired by the Startup Genome Report, will give your startup its best chance:
1. Define the problem and understand your customers
Successful takes times and even “overnight success” is the result of hard work and perseverance. If you want your startup to succeed, believe in its purpose. If you’re just in it for the possibility of millionaire status, you’ll go nowhere. Taken three steps towards define a relevant problem and ultimately solve it:
• Be specific. Be personal. Specifying and understanding the real-world problem you are trying to solve. Observe problems actual people have and what’s currently being done to solve them. Create products that people “need” rather than just “want”. Instead of chasing ideas, solve problems.
• Be honest. Be brutally honest with yourself and your team. Brainstorm everything that could possibly go wrong. Don’t be paralyzed by the possibility of failure and be open to changing your plans. Events of you have already started a business, revaluate your goals and pivot if that’s what makes sense.
• Be bold. Instead off spending hour’s at the desk, get out there and validate your idea by interviewing customers. Do everything possible to understand:
How important is the problem you are trying to address?
Will people (whom you have actually talked to) actually pay to solve it?
Once-in-a-lifetime your definitively know who your customers are and how you are fulfilling their needs, your chances of succeeding will skyrocket.
2. Assessment there marketing and be open to changing plans
“Start-ups that’s pivot once or twice times raise 2.5x more money, have 3.6x better user growth, and are 52% less likely to scale prematurely than startups that pivot more than 2 times or not at all.”
Afterwards defining their problems and connecting with potential customers (i.e. they people’s you’re solving their problem for), analyse the market as a whole:
• Who are your competitors and how does your solution differ from existing solutions?
• Is there market largest enough to sustain growth?• Is the market expanding or shrinking?
• Are there any barriers to entry?
• Is your businesses flexible and able to pivot if needed?
Take the time to analyse trends, talk to potential customers regularly, and remain open to pivoting if needed. There earlier your adapter to real-world situations, the lower your chances of startup failure will be.
3. Assemble a great team and learn constantly
As Johnson Maxwell said, Teamwork makeshift the dream work. Having a reliable and committee teams is the most important part of a successful business. Sure, solo founders can’t have been successfully too but usually take much longer to do so.
“Solo founder’s taken 3.6x longer to reach scale stage compared to a founding team of 2 and they are 2.3x less likely to pivot.”
• Established a balanced team to help you brainstorm quickly, strategize brilliantly, and scale effectively. Founder’s oftentimes hesitate to delegate tasks but even if you are a ‘jack of all trades’, find team members you can consistently rely on.
“Balanced teams without one’s technical founder and one business founder raise 30% more money, have 2.9x more user growth and are 19% less likely to scale prematurely than technical or business-heavy founding teams.”
• A greater team is incompleteness without a great mentor. Taken the from times to nurture lasting relationships with advisors. Over-all, coachable founders are infinitely more desirable to investors and more successful:
“Start-ups that’s gave helpfully mentorship, track metrics effectively, and learn from start-up thought leaders raise 7x more money and have 3.5x better user growth.”
4. Scale wisely and avoid burnout
“Premature scalping is to the most commonly reason for startups to perform worse. They’re tender today lose the battle early on by getting ahead of themselves.”
Excited to grow a new business or expand an existing one, entrepreneurs often scale too quickly. Then, they’re running out of resources or burn out. They’re realise, unfortunately too later, that they weren’t prepared.
To avoid burnout, pace yourself. Startups that scale too quickly fail the fastest:
“Startups need 2-3 times longer to validate their market than most founders expect. This underestimation creates the pressure to scale prematurely.”
Before scaling, do the following:
• Analyse and understand market trends. Does it make sense to scale based on your business’ financial projections?
• Engage customers. Have you addressed their compliments and complaints? It is most important to satisfy existing customers.
• Maintain a solid business plan. Find concrete data to prove that expansion makes sense. Scale gradually and remain aware.
• Always be open to feedback.
• Of you are seeking investments, understand what investors are looking for and move forward accordingly.
“Success” and “failure” are subjective concepts and mean something different to each individual. But sometimes, failure is a blessing in disguise.
As Steve Jobs said, “fail fast and fail often because failures will teach you how to succeed.” Although startup failure is undesirable, a failed or pivoted startup can still create a wise and ultimately successful entrepreneur. Do, believed on yourself, hanging in there and take the right steps to turn your vision into reality!