Why do startups fail? #3
Omar Mohout and Carine Lucas wrote the book 99 Reasons Why Startups Fail. The title speaks for itself: the book gives you 99 reasons why startups fail and how to avoid them. You can read the first four reasons in this article, the next five here and reasons 10 to 14 down below. Write them down if you are planning to become an entrepreneur!
5 reasons why startups fail
The ability to convey an idea or opportunity with confidence, eloquence and passion is one of the most universally useful skills. Whether you’re pitching to a group of investors, rallying your employees, selling to a customer, recruiting talents, addressing consumer needs, or doing a press tour, the ability to deliver a great talk with a clear message is absolutely invaluable.
Procrastination Is A Thief Of Time.
Face your demons and remember that being busy is not the same as being productive. In fact, being busy is a form of laziness.
Taking part in incubator meetings, startup programmes and pitching competitions are great for intensive learning and networking, but can make you struggle to focus on building the product as much as you would like. Pick the activities that are really useful and that will actually make you move forward.
It’s harmless if reporters and know-it-alls dismiss your startup. They always get things wrong. It’s even ok if investors dismiss your startup. They’ll change their minds when they see business growth. The big danger is if you start to dismiss your startup yourself. Frequently, founders don’t see the full potential of what they’re building.
Even Bill Gates made that mistake. He returned to Harvard for the fall semester after starting Microsoft. He didn’t stay long. But he wouldn’t have returned at all if he had realised Microsoft was going to be even a fraction of what it turned out to be.
You don’t run a real business until you get paid.
Pre-revenue, your “startup” is just a hobby is a statement that is over the top but it makes you think about your priorities.
And if your company is a venture-backed business but you have no paying customer, then it’s just a glorified, well-funded and certified hobby. It sounds amazing but nothing has been accomplished yet. The market, if there is one for your solution, is still to be conquered.
Developing relationships with investors at the early stages of the development of an idea can be especially risky.
Of course, it is important to build up relationships at some point. But make sure you are well prepared when you enter a conversation with VC’s or business angels. Otherwise it’s a waste of time for both parties. Even worse, you might have wasted a great opportunity.