eTatvaSoft

Fail Fast, Fail Forward- Is This What You Want?

By: Rakesh Patel
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There’s that great adage, “Fail Fast, Fail Forward” among startup offices and incubators across the globe. In fact, many people here think that there are no failures, there is always a feedback; an opportunity to learn. But as much as we delve into the good game about failure, trust me in real failing, not a good feeling. Now tell me something, have you ever thought of planning for divorce while preparing for your wedding? Exactly, no one starts a company thinking this one will just be my starter and I will get it right next time. Nobody aims to fail, and yet a majority of the startups do fail, why?

Now not that all startups fail, some do succeed pretty spectacularly like Facebook. But overall, we can share anecdotes about why startups we know failed. The following post emphasizes on why startups fail? And is this the only way out to succeed? Down below I have bracket some key reasons for entrepreneurs experienced business failure:

No market need

A major reason why companies fail is that they run into the problem of their being little or no market for the product that they have built. For instance, there is not a compelling enough value proposition or compelling event that actually causes the buyer to purchase on the immediate basis. Good sales representation will reveal about today’s tough conditions. In addition to this, you will also hear whether the product is a Vitamin (nice to have) or an Aspirin (must have).

Besides, the market timing might be wrong. What I mean is, you could be ahead of your market by a few years, plus they aren’t ready for your particular solution at this stage.

Business Model Failure

Another big issue? Businesses often fail in terms of models before getting anywhere, do you know why? Because entrepreneurs are too optimistic about how easy it will be to acquire customers. This might be because building an interesting website, product or service that customers will beat a path to their door may happen for a while only but after that it becomes an expensive task to attract and win customers, and in many cases the cost of acquiring the customer (CAC) is actually higher than the lifetime value of that customer (LTV). Unfortunately, a vast majority of entrepreneurs failing to pay adequate attention to figuring out a realistic cost of customer acquisition.

Lack of skills needed to win

Are you among those who think that a job of an entrepreneur is to think big thoughts and hire other people to do the actual work? If so think once again. One of the biggest reasons why startups fail is that their founders cannot do anything especially the ones which need most to get off the ground. To be very precise, it’s when the CEO can’t code when coding better than almost anyone else is the thing that must happen to build the product and get customers.

And in case, you are doing the same then your odds of success will increase if you bring world-beating sales skills and knowledge of the market need you are addressing. Success can only be achieved if you have already developed a strong relationship with a world-class coder. Most of the time entrepreneurs boost their odds of success if they pick industries that value the skills at which they excel and love to practice.

Running out of cash

You may be categorized as an entrepreneur who is an engineer at heart. A person who aims to build a perfect product and then dazzle the world with their brilliance. They eagerly read about how easy it has been for other startups to raise millions of dollars thinking that one fine day they will be able to do the same. Due to this, they ignore the rate at which they are burning through cash, and assume that when the day comes to replenish their cash coffers, investors will break down the doors to write checks.

Inability to raise capital

Have you ever raised capital for your startup before? If not, then chances are there that you will be surprised by the time and number of rejections required before you succeed. In case, if an entrepreneur realizes that he will run out of cash, too often he starts the process at the last moment which even includes going after the wrong group of potential investors, and does not present them information about the company that leads them to want to invest.

Weak team, poor leadership

A final start-up killer is a professional who cannot recruit and motivate the most talented people for the jobs on which the company’s success depends. What I mean is if you are not a good leader then it’s extremely hard to learn to become one. After all, the leadership skills required to run a company comprising of 10 employees are different than what it is required to run a 100-person or 1,000-person company.

On and all,

Starting up is hard to do and if you can’t navigate your venture around these problems, yours will surely perish. Get in touch with eTatvaSoft – web, ecommerce & mobile app development company in India to make successful your startup.

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