Creating a Start-up: Lessons to Learn from Successes and Failures
How to avoid the mistakes in start ups? Though it works out as a trial and error way, but you can very well avoid it. Read the article to know how!
Launching a start-up is easier said than done. It undoubtedly takes time, money, and a lot of effort, making it a daunting and exhilarating experience at the same time. The report says that around 90% of all new start-ups fail, and only a handful can stand on their feet and become something.
Even if you look at entrepreneurs who have made it big today, most leave behind a trail of failed attempts. One might say that trial and error is the way to go, but you can very well avoid it.
Learn from other entrepreneurs experiences and mistakes
Success stories might ignite a spark of hope within you, but do not overlook their chapter on challenges. These lessons from the failures and successes of start-ups will give you an insight into the reality of the world of building start-ups.
You can learn from the mistakes made by other entrepreneurs and steer clear of them while you build your empire.
Having the right business partner
Entrepreneur Neil Patel writes a blog on the lessons he learned while building his start-up “CrazyEgg.” His initial criteria for choosing a business partner were someone who was a friend and had graduated from an Ivy League institution.
He launched CrazyEgg with someone that fell into the criteria. It cost him a fortune (around six figures) to buy his friend's shares and pay the lawyer fee after his friend sued him for mismanagement of funds.
The business partner you choose should have skills that complement your skillset. The co-founder of your start-up does not have to be your friend but should be someone trustworthy, flexible, and reliable.
Getting feedback before the launch
Juicero was established in 2013. The product they were selling was a $699 luxury juicer that can connect to Wi-Fi.
People were not very pleased with this expensive juicer which eventually forced the brand to sell its products at around $399. The price was not tested before the market launch of the start-up, which cost the company to shut its operations after a few years.
It is essential to test the waters before you set your start-up to sail.
In 2003, three guys started a company that created around 51 games that failed and almost broke before one achieved great heights. That is the story of how the game Angry Birds began. It has over two million downloads today.
Remember, don't start packing up at the first sign of distress. Setting up and running a successful start-up can take more time than one can expect it to take. Keep going!
Helping solve a problem
In an interview with foundr.com, Alexis Ohanian said that an investor refused to invest in their initial idea- a mobile product, and asked them to build something for the browser that helps solve a problem.
It is how Reddit took paved its way in the market.
Neil Patel started his company Kissmetrics, and on his blog, he explains that he started the company because he liked the product without knowing what the customers wanted. His product analyzed analytics. It took around three iterations for Kissmetrics to become a success after the product was made viable for the public.
Airbnb started by renting out three mattresses to travelers who came for a design conference and could not find accommodation in San Francisco. Now Airbnb is a global company that solves traveling and accommodation problems in different countries.
It is important that your product solves a problem and must be built for your customers and not just yourself.
Mike Kappel, the founder, and CEO of Patriot Software, LLC, believes that planning is the key. Planning is essential not only for a successful company. It is vital to engage in the planning process and plan for the possible worst situations because nothing in a business goes according to a fixed plan. So, modifying strategies and planning for various situations eliminates the state of unawareness.
Every start-up founder has to face challenges every step of the way and not just at the beginning. However, a founder should be headstrong and dive right into facing each of them.
One must have the ability to take risks, persevere through challenges, and have patience.
Learning from mistakes along the journey is what makes a businessman/businesswoman. A never give up attitude is one of the qualities of a businessperson that can help them find success.
1. How do I launch my start-up?
Once you have a sincere business idea, reduce it to writing and make a detailed plan to bring it to fruition. It includes identifying the target group, pitching to investors, and devising a marketing strategy.
2. How do I start my start-up?
You will have to focus on different dimensions of starting a business. For this, ensure that you have a team of motivated individuals and divide tasks efficiently.
3. How do I start a start-up with no money?
While it is possible to launch a start-up with no money, it can be a comparatively hard road. For this, you will have to go out of your way to bring in capital from friends, family, and investors.
4. What lessons can you learn from your venture?
The primary start-up lesson you should be aware of is to prepare yourself for downfalls and don’t let them discourage you from giving your best to your venture. Further, surround yourself with driven and equally motivated individuals.
5. What are some key learnings to remember when starting your own business?
Remember to expand your network and leverage this networking to its best. It will help you with the necessary resources and potential investors to raise money and make your business visible.
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