Nowadays, the emergence of new StartUps is as common as their failure. The road to success is not easy, and not everyone (in fact, almost anyone) can reach the finish line.
It is estimated that 80% of startups fail, and some people believe this number is even higher. Right now, your startup could be on the road to failure, and you don’t even know it. However, there are a few signals that will let you distinguish if your company is approaching the collapse:
Lack of Interest in the Product
Your company will definitely not achieve success if you don’t believe in your product or feel demotivated about it. When you are building a startup only to earn money, then you have big chances of failing.
Short advice: At the same time, you can’t build a startup on something nobody cares about, only because it is your passion. It may be hard for some, but you should also think about the monetization strategy. In the end, money is what will allow you to keep the company running and the product into circulation.
Lack of Interest in the Work Area
Your startup is focused on a certain area and you work on it every day. You may have chosen that area because you know about it and like it. But some startup owner’s build a company in a specific area only because they have found an opportunity. If you, your co-founders and your employees are not passionate (or at least interested) for that area, there is a big problem. This can lead to a bad predisposition that will be reflected in the productivity.
Short advice: Avoid working on something you are not interested in. The knowledge can be acquired, but it is more difficult to acquire enthusiasm.
Constant problems between the members of your company can highly interfere in the progress of your startup. When employees or co-founders don’t carry out their tasks, or badly interfere in the tasks of others, an unpleasant situation is generated.
Short advice: Pay attention to the relationships between your employees. Listen to their opinions and consider their feedback. Organize meetings outside the labor sphere and keep them motivated.
Looking for Easy Money
When a startup owner builds his company only thinking about becoming rich or famous, it will hardly reach these goals. The desire of building a startup needs to be supported by something more solid, as the desire to meet a particular need.
Short advice: Start your business thinking to serve a more important purpose than getting money or recognition. It is the only way to ensure your passion for your business.
A company cannot be based on another one as a reference for its development. Perhaps, in the beginning, it’s not bad to look at other startups to get some ideas, but after a while, the lack of autonomy and originality will certainly show effects on the public perception of the company.
Short advice: Each company should build his way alone. Your action plan can’t be to copy your competition. You should seek for a differentiation and develop features your competition doesn’t have.
No Listening to your Customers
You can’t start a company and wait for a response from your audience if you don’t show them you have interest in their opinions and feedback. You need to listen to your customers and adapt your product according to their beliefs. After all, they are your source of income. Those who forget about this, are destined to fail.
Short advice: Your success depends on your customers. You should listen to them. Carry out surveys and send them cold emails.
Seeking for Perfection
There aren’t any problems with working hard to be the best ones, but there is a limit to everything. Strive for efficiency over perfection. The quality of your work is important, but you need to operate with the awareness that perfection is almost impossible to reach.
Short advice: In most cases, the details we need to work on to achieve perfectionism are unnecessary for the ultimate goal pursued by our product or service. You must be able to distinguish what to pursue and what not to.
During the process of building a startup, you will probably commit many mistakes and you will have to confront many issues you will probably be not able to solve due to your weaknesses. However, you and your startup can get recovered from that. An unforgivable mistake is not to learn from these errors and hide them.
Short advice: Do a SWOT analysis in which you reflect on the strengths, weaknesses, opportunities, and threats of your startup.
Scared to Experiment
In some cases, once a startup has a big-time running, the owners want to avoid failing, so they remain in their comfort zones and are not encouraged to make changes or try out new ideas. This is provoked by the feeling that everything is going well as it is. But, without any improvements in their products or services, chances of being replaced by another company increases.
Short advice: You may think that if things are going well now, they will go well then. But your audience and customers changes and your product should do so.
No Real Necessity
It is well-known that your startup should solve a problem people are confronting. It can be a small and silly problem, but, as far as some people suffer from it, there is a great opportunity to start a business. However, in some cases, startups aren’t solving a real necessity. And in some others, they solve a problem, but, as it is not the priority of the people, they put it off. In these two cases, the startup is doomed to fail.
Short advice: The problem your startup is solving needs to be a priority for your customers. Not just a thing they can put off.
BONUS: Learn from your mistakes
The biggest problem a startup can make is to commit the same mistakes over and over again. You need to learn from errors, in order to avoid making them again. During the process of building your startup, you will have to pass through lots of mistakes and you will be able to learn from them. But some people say it is better to learn from others’ mistakes, rather than make your own ones. In Failory you will be able to learn from failed startup and the mistakes they committed.
There are many other signs which anticipate the failure of a StartUp, but these are the ones that appear more frequently. Now that you know the ways to prevent these causes of failure, its time of working hard to belong to the 10% of startups that achieve success.