Two different Types
Here is the catch:
Many startups fail here because they did not know how to reach out to the market, but John & Mary took their startup to another level and invested in social media, advertisement, and all available channels to get the new spread.
Even they got help from an agency to boost their online presence and help them become successful entrepreneurs and launch the next big startup.
As suspected, nothing happened! Are you Wondering why?
Why do entrepreneurs Fail?
The biggest problem is taking the linear approach in running a startup.
Then a new Idea came to Mary’s Mind and they added another feature to the product, Aha! that’s how it should have been. They set up a website and a bit more of advertisement.
Hmm!, no result yet, and they spend their time adding another feature and spend on more advertisement until they broke and had no choice but to shut down the startup.
I think that’s enough. Believe me, this is the life of many startups that fail. So what’s the solution and how can you become an entrepreneur? Before we get to the solution, let’s have a look at two type of entrepreneurs.
The First category of Entrepreneurs is “Idea Generators”
This type of entrepreneurs have great ideas, and I mean Plural form of Idea. The positive side of it is the fact that they are innovative and are capable of producing great ideas but there is a down side too.
As soon as they start working on one idea, another idea comes to their mind and in a course of time they find themselves working on many ideas and literally producing nothing. S/he has no idea what is a business model or what business plan pattern they should follow to succeed.
One of the most dangerous situations for any entrepreneur and startup occur when an Idea generator is not mature enough to hold on to one idea until the first one reaches a clear stage to measure its success.
The startup’s situation will get worse when the startup is the combination of two immature entrepreneur founders where one is an idea generator and another one is a Product Evangelist.
All existing records has proven that more than 3 out of 4 startups with that combination does not even reach the point to launch, let aside the fact that their startup is unconsciously set for failure.
The other type of entrepreneur is called “Product Evangelist Entrepreneurs”
Due to lack of business planning skills and soft skills that every entrepreneur need to develop, majority of the startups launched by product evangelists, sadly, have a huge chance of failure. These startups are formed by a group of “Technology driven, tech savvy, passionate entrepreneurs” who love to build things on top of another thing.
In fact, in order to become a successful entrepreneur it’s amazing to have a good product, however, what causes the failure is the illusion that your product can drives your startup to succeed. These startups produce products and services that have Lots of amazing features, and “Regardless of market feedback“.new versions are released every month.
Indeed, product evangelist entrepreneurs are very interested to walk you through every aspect of the product and its features, but when it comes to monitoring market response they are not that successful.
When it comes to Entrepreneurship, everyone can imagine to be featured in Wall Street Journal and receive invitation to speak in TED. The truth is that without a proper strategy the dream of launching your startup and get a great hit is unreachable, and that’s why many times, Entrepreneurs fail.
Many entrepreneurs believe that as far as they have great ideas, amazing products, and resources such as customers and fund, they will be the next Uber.
If you are asking yourself” What’s wrong with it? As far as I have a good product and Idea and money to sell the product, I am good to go; then read the secret behind successful startups because that’s an entrepreneurship myth!
Let’s have a look at 3 Startup Ideas that have shut down after a year, despite having fund, customer, a great product and creative idea.
1) HealthSpot , a tele medicine startup shut down – Here is the story in News
2) Sidecar, Bought over by General motors as they could not compete against Uber
3) Pixable, a modern image search & editing startup.
That’s a sad news for any entrepreneur.
What can you do to prevent your startup from failing?
Many startups like Mary and John fail because they have either no framework or they have a Broken Framework.
Starting your startup is not a linear process and you need to take to account many factors such asMarket, Customers, Feedback, Strategy, Business Model, Promotion strategy, culture, dynamics of people, and indeed all of these factors shall be clearly addressed in recurring cycles.
In order to become a successful entrepreneur in today’s market, you need focus on 3 different components
The first important element to become an entrepreneur is Your Business Model:
Unfortunately many startups, investors and business owners think that business model is a document with hundreds of pages, that starts with an executive summary, and most certainly should include a detailed 3 to 5 years financial forecast.
It pains me to say that but even today many professors still teach the dated business models and business plans to MBA Students in many business schools!
I have clearly explained what business model should you use in today’s market and how can you craft your startup business model canvas
The second Component that you need to pay attention to is your approach towards running your startup.
Lean startup has transformed they way startups are being formed, operated and succeeded.
I’ve clearly elaborated the lean startups framework and steps in another article. You can also find interesting essential techniques from Agile Product development to complement your Lean Startup strategy and your business model canvas. This helps you build your product faster and go to market with more confident.
Last but not least is the set of amazing Proven promotion strategies that you need to spend time on and get your startup to the next level. The proven strategies That I have shared in this article works amazingly with both Online and Offline strategies that get you in front of customers and increase your chance of success