The probability of startup survivability is low. No more than ten percent of companies who attempt to survive will actually start to see the light of day a decade later.
This isn’t designed to dissuade you, but instead prepare you for the chaos — the unplanned change — that oftentimes “just happens.” Hey, Murphy (of Murphy’s Law infamy) gets bored, too.
Yes, founding a startup or another killer tech app that will require zero overhead is a good way to start out raking in the dough. However, getting there may be the challenge as startups fail for several reasons. Luckily for all of us the reasons are normal, which means we are able to anticipate them and with anticipation comes quantification and qualification.
10 Deadly Startup Mistakes in order to avoid
Put simply, whenever we anticipate the (un)odds of event XYZ occurring, then we are able to also gauge our (un)likely response to it. We are able to quantify the resources we are in need of and qualify their feasibility.
Being conscious of the procession of pitfalls to which founders fall prey may be the first rung on the ladder to avoiding them. Listed below are five to understand (in no particular order).
Have you ever heard the word, “"being early is equivalent to being wrong?” That is when the passion and excitement of starting your small business overwhelms the pragmatism of actually planning it out. Pets.com may be the perfect example. Your pet supplies market is an enormous (read multibillion dollar) market today, but pets.com arose through the dot com boom — and failed. They didn’t fail since it was an unhealthy idea, it had been just bad timing. Timing is everything. Talking about ideas…
A concept is great, but a concept without execution is a dream. Take dodgeball.com, for instance. The location-based social-networking service was founded in 2000 before it had been acquired by Google in 2005, using its demise due to the fact that there is no strategic planning why users would want to buy.
Facebook wasn’t founded until 2004, which meant that staying up to date with what friends were doing wasn’t important. Moreover, dodgeball.com users had to text their location whenever they wished to update their location which meant an extra expense with their phone bill.
3 Surefire Methods to Fail as a business owner
Not absolutely all teams are manufactured equally, and a very important factor that defines a highly effective team may be the chemistry that binds it. Competencies could be learned, but personalities determine fit, and fit is what constitutes the chemical "magic" that determines team effectiveness.
Consider of the last team you were part of where everybody got along except one. There’s always “that guy” who decreases the stages of team development, so when that occurs, it’s time to let him (or her) go. Fit is everything. Hire for fit, train for competence coach for performance — that’s the recipe for success.
Marshall Faulk, former NFL running back, was known for his sixth sense. He watched game footage and replays to review a couple of things: the competition’s reactions and his own teammates’ reactions to them. Consequently, he developed such contextual awareness that he could predict players’ next moves.
Similarly, startups who don’t study the marketplace or their competition soon fall, because they lack contextual awareness. If entrepreneurism is your game, study to be an Students.
Founders who lack passion simply don’t have the fire that fuels them through a down economy. They lack the wherewithal to slap Murphy in the facial skin and say, “Not today.” If it’s earning money that motivates you that’s fine, but beware that money comes and goes. Passion doesn’t. Leverage your passion to fuel your financials — and you will never tire out.
Don’t Make These 5 Common Mistakes Through the Early Phases of Your Startup
Knowing what failure appears like is the first rung