17 Mar, 2015 | startup failures, startup failure remedies
Studies show that, 90% of the start-ups fail, no matter how much you try. And the major reason for failure is that most start-ups are building a wrong product, not understanding what the customer really wants. Many entrepreneurs overestimate the chances of success - and the cost of failure.
Silicon Valley says, if you are going to fail, fail fast. And you get to move on with your life, because 93% of start-ups backed by accelerators like Y Combinator fail within the first 5 years.
It's quite frustrating, when every social media is buzzing with how much money Airbnb and Uber are making, while all your investment pitches are going down the drain.
However, you should also note that, success doesn't mean you are profitable. Companies like Uber, Amazon are valued at billions and they still don't make much profit.
That's why we have start-up accelerators to help you grow. But, getting into an accelerator is not just luck. It requires hard work and passion. Typically 90% of the applications are rejected by most start-up accelerators.
So the only option remaining, is to network and speak to some experts on your field.
Some experts would suggest you concentrate on building your product, while some other experts tell you to speak to your customers. Ideally, a combination of both is the perfect mix, where customers are involved in building your product.
Everyone expects you to do all the homework. And if you fail, they'll just say - "You didn't do enough homework".
Most fail to understand, starting a business does not necessarily bestow only upon the founders/co-founders. A true accelerator is one which helps you reach the customers and also help you in build it. It's not that, money is the last thing for a business, but investment is definitely not the first thing for a start-up.
A successful start up would have approached the customers, before they even think about making a business plan out of the idea. And if you are a start-up founder, pre-launch marketing is what you need to be concentrating on.
Remember, the founder of Dropbox did not start coding the site, until he had 50K users.
Image Courtesy : Under 30 CEO
Further reading -
90% of startups fail | Silicon valley start-up failures | Why startup's fail?
Business Failures | Odds of success for a start-up | 7 reasons start-ups fail
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