If you are a founder, you must know how tricky it can be to even know what would be the right course of action when you are dealing with the life and death of that dear startup you have put your soul into. It is daily news that we see more and more projects coming to life in the shape of a startup worldwide. It may have been spurred as a form of a niche, a fascination, or a drive to introduce something new, but every startup is an idea in the making. Every new business becomes a pillar in supporting a country’s GDP yet many dwindle right at their early stage.

 

But, Startups need not die. As long as you have the information you need, you have the chance to land it just right. You may have read scores of articles on why Startups fail and even more number of offerings to help Startups succeed. Over here, we are trying to connect the dots for you with some practical tips.

 

Let’s understand the top reasons why an early-stage startup fails in the first place:

 

1.Lack Of Market Prediction

The top factor here comes to be the failure to anticipate the market and its demand. Often an idea may seem like a breakthrough, but it won’t run if there is no demand or scope for it. Many early-age startups fail to relate to the needs of their potential customers, and so create a market-unfit product that the consumers don’t want.

As a founder you have to get deep into the pain point you are trying to solve with the product. Assessment of the problem is really necessary before you jump into the arena, and it must be followed by the analysis of the product itself whether it passed or failed.

Who is it for ?

Will he/she pay for it ?

Will he/she buy it again and again?

How many are really going to buy and for how long ?

 

2.Issue Of Funding

No other facet of Starup is more predicated on hope than funding. Another common endpoint for any new startup is simply the lack of funds and inability to support operations any further. Even when a founder manages to secure up the initial funding, getting the next set of funds, perhaps a refill could be a nail in the coffin and the business is left hanging on threads. Speaking of threads, since there may usually be a scarcity of funds, a business should always spend their money wisely while it lasts.

To save yourself from the trouble of running on low resources, a startup should be well-thought-out in the first place with a bold business and revenue model, and an even bolder will to take responsibility of that idea.

-       If you have a 100 Rs, spend on 50 mistakes of 2 Rs each rather than on 2 mistakes of 50 Rs each

-       If you had the choice between prolonging survival and quick shot at success or next round of funding, vote for survival

-       The hand that feeds the turkey, slices its neck on Thanksgiving day. Your Investor pushing you to spend the money to show results may actually be pushing you towards the precipice, resist the temptation, come what may !

 

3.You V/s The Competition

Every founder has to make peace with the fact that no startup is alone and if there is, soon there will be a competitor. Failing to surpass a competitor is one of the reasons for an early-stage startup to shut down. What helps in this case is having something in the business that differentiates you from the other market players. It can be something unique in the customer service, an offer, a different feature, different marketing, different geographical targets, etc.

Always keep a close eye on the market behaviour around you and your opponents to plan ahead and revamp your production with any upgrades needed.

-       Why are your customers raving about your competition on social media handles

-        What is the magnet you have to pull customers

-       Why are window shoppers not converting?

-       Are they profitable customers or loss making customers ( yes these questions should haunt you)

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4.Marketing

Peter Thiel once famously said, ‘ Don’t expect customers to come just because you have built it, make them care for your product”. Marketing is what rules the market influence now, even so more than the product itself. But spending blindly on a badly planned marketing strategy will always lead to money spent in vain, and ultimately the shut-down of business as discussed in the 2nd pointer. A business, along with a good business model, needs a good marketing strategy to compliment it as it draws customers in. Now that there are many forms of marketing, and it has become an independent employment industry in itself, there are business that really put their brains and brawns together when it comes to marketing.

-       Test Early, Test frequently

-       Polish and perfect and then polish again

 

5.Product Foundations

In the end, or even the beginning it is always the product or service that any business boils down to. It won’t last if the product is bad to the core even though the product is as simple as a candy bar, Before going on with the fundings, marketing, and the logistics on full throttle, a good amount of time must be given for the product to evolve in the ideation process alone, and later analyzing it for richness and efficiency.

-       What is it really supposed to do?

-       Does it do what it is supposed to do in a simple, easy-to-use, delightful way?

-       Are Customers loving it or they are indifferent and how are you determining the same ?

-       Who and how many care about it by sharing feedback, pointing out bugs and improvement areas?

 

6.Customer Service

The customer is the ultimate jury who must have the final judgement on whether the product will be purchased or not. In an age where consumer protection is stronger than ever, customer service must be taken seriously by every early-stage startups. Providing the right information, the timely and productive responses to complaints, and building a yielding relationship with them is all a part of making a good impression and reaching out to more potential customers through the word of mouth.

-       Can a customer contact you and get the issue resolved or does she have to scream

-       Do you throw a fit before the customer does?

-       Is whatever that you are measuring helping you increase sales and customer satisfaction?

 

7.Research

Before entering the market, you always have to move with researched facts. Time the product placement right, and you become the part of the market at a good speed, Not very early, and not very late, or the market you are placing your product in may not make the impact you had hoped for. Launching the product at the right time should also be taken as seriously as the other factors that go hand in hand with your business model. Sometimes, even a product not fully developed enough is capable of generating insights and curiosity from investors and buyers.

-       Gut feel is not reasearch

-       Surveys are not research

-       MVP is research on steroids

-       Paid customers is research without assumptions and consolations

 

 

You will always need help when you have to stand out from others in the crowd or else you may go on to carry out an idea with a motive which may be taken in as something else entirely. Now you have the general idea of why, especially at an early stage must you take help when you want to make your next new idea stand tall. Don’t know where to look for the helping hand? Happy to help !