How can you Minimize Startup failure?
It is common knowledge that 90% of startups fail.Is there a secret recipe to reduce failure. Even though one cannot completely avoid failure there are ways to to minimize failure.These ideas are business agnostic and one may wonder that it is organised common sense
1.“As an entrepreneur, you have to be OK with failure. If you’re not failing, you’re likely not pushing yourself hard enough."-Alexa von Tobel
–Founder of LearnVes
2.“If things are not failing, you are not innovating enough.”
–Elon Musk, CEO of SpaceX and Tesla Motors
The business idea solves a problem of customers which is critical for traction. However it may still fail. This can be attributed to the following two broad categories.
1. The attitude / Qualities of the Solopreneur / Business Partners
2. Business Reasons
“Sustaining a successful business is a hell of a lot of work, and staying hungry is half the battle.” -Wendy tan White- Co-founder and CEO of MoonFruit
The caliber and quality of decision making by the startup entrepreneur can be the main reason for failure.Certain skills are critical for success. Absence of these affect the quality of decision making.
1.Domain Knowledge. Culinary Skills a must for restaurant Startups
2. Focus- Single minded pursuit of the goal and not taking eyes of the path
3. Commitment / Passion - Any Startup calls for boundless energy level and remaining positive in the face of adversity which will present it self in plenty.
4. Flexibility and being Rigid. The proportion matters
5. Seeking the right advise and building network
6. Ignoring red cards like cash burn, Talent retention, changes in market dynamics etc.
7. Lack of clarity in roles among business partners
8. Ego Clash among partners
1. Product- Market Fit
2. Low Entry Barriers
3.Poor Cash management- Do not focus on Profit at early stage- Focus on Cash
4. Competitive Pressure like low priced product
5. Marketing Spend
6. Lack of rapport with customers
Fail fast as failure is inevitable in any startup. Ability to quickly change the pivot will be the benefit.Market aka CUSTOMER alone can determine your success.
Don't be discouraged by the number of times you have tried and failed, but be inspired by the number of people who have failed and bounced back as successful entrepreneurs.
Have a plan, be persistent, perseverance, a willingness to be flexible, and build a strong team.
Be frugal, bright, and cultivate strong mentors.
Separate personal expenses and company expenses
The best way know to do all these things well and efficiently is to follow a systematic process where you plan, commit, track results, promote accomplishments and raise the necessary capital, or "fuel in the tank," to drive the growth of your startup.