3 Ways to Avoid the Agony of Startup Failure

Curated by WorkingFromHome

This article is an excerpt from the original article found in the Read More link – please follow for full article.

So many startups fail, but yours doesn’t have to.

5 min read

Opinions expressed by Entrepreneur contributors are their own.

The easiest question to answer in high-growth entrepreneurship is: Why do so many startups fail?

After more than 20 years of investing in startups and working with entrepreneurs, I can say with conviction that most startups fail because they didn’t solve a market problem with a scalable solution that customers wanted to buy.

That begets the next question: Why is it that so many bright, determined entrepreneurs — innovators, who are willing to risk time, reputation and money to build a technology-based business — fail to solve market problems that produce sales?

The reasons are many — blunt and nuanced. It can be a matter of execution — the company burns through its cash before achieving the critical milestones that lead to breakeven and additional funding or revenue. Sometimes the competition gets there first, or recession or a black swan event (think pandemic) hits.

Or just maybe, the startup founders didn’t do the right job of customer and market validation before they built their business plan.

Since 2014, CB Insights has gathered first-person startup failure post-mortems from hundreds of founders and investors. The data is anecdotal but very telling. The No. 1 reported reason for company failure: no market need. All types and sizes of startups acknowledge making this mistake, from pre-seed ventures with less than $50,000 from family and friends to unicorns (private companies worth $1 billion or more). The No. 2 reported reason for failure? The startup ran out of cash. Reason No. 1 is the reason for No. 2.

Achieving product-market fit is not easy, but our industry can do better than we are. Here are three ideas to help entrepreneurs make tough-minded and practical market and customer validation the starting point of their new businesses.

1. Change your mindset and your mind

Stop thinking about your product and relentlessly focus on your customer’s pain. Drop preconceptions about what the market “really needs” and look for problems that the market has. The goal is to uncover evidence of an issue that is so common, so well-understood and so pervasive that everyone in your target industry recognizes it and calls it out.

You are not looking for problems that are interesting to solve. Look for problems that won’t go away. Don’t ask friends and family for validation. Your spouse, partner, college roommate or attorney all want to tell you how right you are. There will be plenty of opportunities later to trust your gut. Instead of trying to prove your assumptions, set out to find proof of where your assumptions are wrong. Ideas fail, and if none of yours have, you didn’t dig deep enough — plan to pivot more than once. Keep exploring until you find a product-market fit or exhaust the options. Failure of one business concept frees entrepreneurs to think up new ideas.

Related: The Golden Rule of Starting Up: Product-Market Fit

2. Make customers part of your validation team

Learn everything possible about your target customers — down to the way they tie their shoes. Customers will tell an interested listener what their problems are. Talk to people who are usi

Source: Entrepreneur.com

More here:
3 Ways to Avoid the Agony of Startup Failure

You May Also Like…

Married to Your Business Partner? Here’s How to Navigate Both Relationships.

Married to Your Business Partner? Here’s How to Navigate Both Relationships.

Married couples who run their businesses together face unique challenges, but they can also be extraordinarily successful. June 22, 2021 6 min read Opinions expressed by Entrepreneur contributors are their own. Marriage is tough. It’s more difficult than anyone realizes from the outside looking in. No matter how perfect your dating relationship is, marriage takes things to a whole new level. Couples find out what their marriage is really made of when challenges arise. For some, pressure and friction strengthen their relationship. For others, small fractures that were previously hidden transform into active fault lines that cause irreparable damage.Likewise, starting and managing a business is tough. It’s not nearly as sleek or sexy as they make it look in glossy business magazines. The work is gritty, the hours are long, and failure is plentiful. Few entrepreneurs make it past the first couple of years. Of those that do, there’s a long…

These 5 Branding Factors Will Take Your Business to the Next Level

These 5 Branding Factors Will Take Your Business to the Next Level

The importance of branding in business is undeniable. No matter what industry you are in, there will always be someone who offers the same product or service that you do. June 22, 2021 3 min read Opinions expressed by Entrepreneur contributors are their own. The importance of branding in business is undeniable. No matter what industry you are in, there will always be someone who offers the same product or service that you do. What sets your offering apart is the brand attached to it. Building a brand takes time and a lot of effort, but any business or entrepreneur who takes the brand-building process to heart will experience more success. But we need to realize that branding is more than just a logo. It’s about the experience as a whole. That includes the visual and tangible, and even the intangible aspects of your business experience. Unfortunately, many business owners today…

Working From Home TV …

Tips to enhance your own website…

How to Set Up a Site Like Teachers Pay Teachers with WordPress – Website Tips

How to Set Up a Site Like Teachers Pay Teachers with WordPress – Website Tips

Do you want to set up a website like Teachers Pay Teachers using WordPress? Teachers Pay Teachers is an online marketplace for educators where they can sell educational resources to other teachers. The platform makes money by selling memberships and taking a small fee on transactions. In this article, we’ll show you how to easily create a website like Teachers Pay Teachers in WordPress. Getting Started with Your Teachers Pay Teachers Like Website To make a Teachers Pay Teachers like website in WordPress, you’ll need a few things to get started. First, you’ll need a domain name (example: wpbeginner.com) and a web hosting account to store your website files. Normally, a domain name will cost you 16.99 per year and web hosting starts at $7.99 per month (paid annually). Now if you are just testing the waters, then this may sound a little expensive. Luckily, Bluehost has agreed to offer…

How to “Easily” Create Custom WooCommerce Thank You Pages – Website Tips

How to “Easily” Create Custom WooCommerce Thank You Pages – Website Tips

Do you want to easily create a custom WooCommerce thank you page? A custom thank you page for order confirmation is a great way to connect with your new customers and even get additional sales. In this article, we’ll show you how to create a custom WooCommerce thank you page, step by step. Why Customize a WooCommerce Thank You Page in WordPress? Creating a custom WooCommerce thank you page gives you a way to connect with your customers when they make a purchase. The order confirmation or thank you page may seem like a small part of your online store, but it can actually be a very valuable part of your sales process. The problem is that default WooCommerce thank you page isn’t really optimized for conversions. This is why smart business owners build a well-designed and high-converting thank you page to replace the default option. There are a lot…

How to Connect Microsoft Outlook to WordPress (Step by Step) – Website Tips

How to Connect Microsoft Outlook to WordPress (Step by Step) – Website Tips

Are you looking for a way to use your Microsoft Outlook account to send emails from your WordPress website? Connecting Microsoft Outlook with WordPress helps improve email deliverability by making sure that your emails reach your subscriber’s inbox, even if you’re sending a lot of them. In this article, we’ll show you step by step how to connect Microsoft Outlook to WordPress. Why Use Microsoft Outlook to Send WordPress Emails? Using Microsoft Outlook is a great option for business owners who regularly use Office 365. You can use your existing account to send emails to your subscribers from your WordPress website. The best part about using Outlook is that it allows you to send a lot of emails at once. You can send up to 10,000 emails per minute, which is a much higher limit than other mailing services. If you have a busy online store, then this will help…

0 Comments

Submit a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.