3 ways to prevent Startup from Failing
Every idea is great when executed properly. Execution is key, idea is not.
I list down few pointers that I have collected through my experience of mentoring several Startups. Most young entrepreneurs see startup as freedom lifestyle, and in reality its far from being one.
Any great business that is built over a long period of time is built-in fundamental value systems. The Values are foundation stones of the company. They are there to make a difference to the humankind and humanity in general. Young entrepreneurs are running after ideas and then convincing PE to invest in them. Certain PE get convinced pump in thousands of dollars to only find that the castles were built on air. The intent for any startup business must be basic, foundational and must touch the Heart not the mind. Most of the ideas work with brain/ mind. Successful businesses happen due to heart, love and not due to intellect or intelligence. Intellect and intelligence are surely required to make the product/ service touch the hearts of customers and stakeholders.
When you have an idea, get to the roots of the impact, and seek out the Honest intent of the business. Create a fundamental mantra for your business.
For example, our mantra at PositiveShift – “we help people to discover leader in them”. Yes every person on earth exist for some reason, we help people to discover that reason. Thats so profound. And we do that through our products and services, such as WIISE.
Entrepreneur KPI, “No. of Exits”
Today Entrepreneur success is based on “No of Exits”. For next round of fund raising, the investors ask you, how many previous exits you had.
Most entrepreneurs enter into startups for “Wealth creation”, this intent manifests in their company’s value systems.
- Quicker exits,
- Fast growth/ Premature growth,
- Excessive PR, branding, Marketing
- Business models on User acquisition, burning cash
How can exit be a measure for success. Successful businesses such as Apple, Microsoft, Google, Amazon and several more are Great today not because the Founders wanted a wealthy exit in 5 years or 10 years. They wanted to dent the Humanity, they wanted to offer something that generations will remember. Wealth creation must be a byproduct not the primary goal.
Our parents, when they were growing us, never thought how quickly they can exit the Parenthood, it was mostly the reverse. Yes business is your Child.
Stick with you business for as long as required. Jack ma said in one of interviews, as entrepreneur he gets introduced to several ideas everyday, we have to resist, keep building on our game and make it big. Wealth creation should be secondary and byproduct not primary.
Heart vs Mind
As mentor to startups, I tell them to evaluate their product/ service offering with heart vs mind. Does your customer feel about your product, do you have a story that touches their heart. Don’t simply say that with my product you can do this easily, quickly, conveniently. My product is the Uber of X, so that states convenience etc. Rather express how your product is going to change the life of your customer. Change the language.
“My product X will help you to do Y easily, quickly, conveniently”.
“Your biggest pain today is Y, I want you to be free of your pain. Will you try X”.
Although many would disagree, but Heart plays major role in success of business. Lot of leaders have said that decision making must be done with logic, intelligence, data – these are all Mind activities. However finally Heart is the decider. If you see in your personal lives too, most major decisions in life would have happened because your Heart wanted so – your Love of life, marriage, choice of school/ college, choice of employment.
Create and Build your product with Heart, sell it with heart, take decisions with heart, then you will be successful. Use Mind to do tactical stuff, help you gather information.
Never stop Learning
Bill Gates takes learning vacation every year. Read this article about Bill Gates and Warren Buffet, If you’re not spending 5 hours per week learning, you’re being irresponsible. Continuous learning must be your daily habit.
Startup CEOs need constant help in learning strategies and techniques. Check out these Startup CEO courses specially designed for Startup Founders and taught by experts.
All the best.