A recent report shows that three new businesses are being founded every second worldwide.
A founder gets an idea, builds the solution, tries to sell it, nobody buys the solution, the founder runs out of money, the startup dies.
Here are the top 5 startup mistakes that you need to avoid to succeed.
A GEM Global Report show that over 100 Million startups are being launched worldwide, every year. The report shows that three new businesses are being founded every second.
Most of these entrepreneurs think they’re building the next big thing, in reality, over 90% of them will fail.
Same script, different cast: A founder gets an idea, builds the solution, tries to sell it, nobody buys the solution, the founder runs out of money, the startup dies.
Why is the startup failure rate this high? Why are so many startups failing? Is there a pattern that can be avoided? What does the data show?
Here are the top 5 startup mistakes that you need to avoid to succeed.
Mistake #1 Building something that nobody wants
42% of startups fail because they didn’t solve a market need. You have to figure out who your primary customer is, what problem they want you to solve, & how you make money.
The most important thing is to make your customer more successful by solving their biggest struggles, challenges and frustrations. Your one and only goal should be to solve a meaningful problem for your customer. Don’t create demand for a solution. Choose customers over products.
Mistake #2 Hiring poorly
Individuals don’t build great companies, teams do. A balanced team with a hipster (designer), hacker (engineer), and hustler (marketeer) has 3 times more user growth than an unbalanced team. Hiring the right fit is as important as finding the right partner. Getting either wrong is a harbinger of things to come. Keep your team close.
Mistake #3 Lack of focus
13% of startups fail because of lack of direction, not lack of time. The only way to stay on track as a startup is to develop the product and talk to users. You simply don’t have time for other things. Spend the most time getting feedback from your customer and tweaking your service or product accordingly. Choose focus over external validation.
Mistake #4 Failing to execute sales & marketing
15% of startups fail because of failing to execute sales and marketing. You can have the best product in the world, but, if your marketing efforts extend to just a few Facebook posts, you’re going to fail. Marketing is key.
Mistake #5 Premature scaling
5% of startups fail because of doing too much too soon. The more a company grows, the further away from profitability it becomes. Don't put the cart before the proverbial horse. Choose predictable growth.
Don’t create demand for a solution. Marketing is key. Keep your team close. Create a product that makes you proud. Choose focus over external validation. Choose customers over products. Choose predictable growth.
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