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Startups fail 90%. It’s a little scary, if you ask me.
Related: 3 Mental Strategies That Can Help You Quickly Overcome Business Failure
I consider myself lucky to be a survivor of the startup failure, but my survival was tactile and the first few times. And my startup adventures have been turbulent – a series of starts, failures, and errors.
Today, I have several multi-million dollar businesses in my trophy case, but I’m still making my share of mistakes.
However, I also see startups in a completely different way. Through angel investment, advice and a firm determination to know as much as I can, I have learned the warning signs of a failed start. If you too work for a startup, whether you are launching one or investing in one, these eight steps are for you. These are the main indicators of failure at startup.
1. You don’t know your customers.
I know it sounds old hat, but I have to say it. Everyone repeats overused phrases like “know your target audience” and “develop a character”, but few companies are really successful.
It is essential to enter the mind of your audience and really understand what makes them vibrate. What problems do they face? What fears do they have? What objectives are they pursuing?
Know these people! Love them! Your business does not exist without them. LikendisLikes fail because they live in an accelerated start-up environment, fueled by adrenaline and a fast pace which is a complete dream. They are not on the streets in contact with real people. They have a startup dream, but it is not grounded in the reality of their daily customers. These customers are the people who we hope will buy your product.
Know your customers and you’re less likely to fail.
2. You are stuck in a mental trap.
We all have patterns of thinking that we follow. It may be our culture. These are perhaps the “best practices” that we have retained in a former job. It may be something that we read online.
Either way, we need to be flexible enough to change our mindset about things. What do i mean Just because you think something is “the best way” doesn’t mean it is the best way.
Put your thinking to the test by taking risks, trying new things and experiencing different points of view. Your goal is success, not “be right.”
Related: Does Falling Business Failure Slow LikendisLikeship?
3. You are not aware of market forces.
Frankly, the market is unpredictable, indomitable and sometimes boring. But you have to face it.
If you pretend that market forces will not affect you or your industry, you are preparing for a major failure. Look, the “market” is impersonal. He doesn’t care about your feelings or your plans. You have to adapt to he, because it won’t make room for you.
4. You don’t rotate fast enough.
I know that “pivot” is an overused term. However, it is an important concept. If you are not ready to rotate, you will fail. It’s as simple as that.
The faster you rotate, the more likely you are to stay alive longer. The pivots are what keep startups alive. Don’t be surprised if you have to rotate five, 10 or 15 times in the first two years of your business.
5. You don’t run fast enough.
The execution is where it is, friends. You can imagine incredible business plans, but unless you execute, nothing happens.
Success implies faster execution than the other. The best entrepreneurs are not the so-called “dreamers” and “visionaries”. No. The best entrepreneurs are the ones who jostle.
6. You are busy doing the wrong things.
Being busy is not a sign of success. It is not even a mark of productivity. Busy is only good if you do the right things. Too often, entrepreneurs are very busy, which blinds them to the fact that they are busy doing the wrong things!
First, clarify what you do and why you do it. After that, you have permission to be busy.
7. You don’t focus on income.
It’s a big problem. Returned. I get it. There are a lot of moving parts in a startup environment, and you have to keep an eye on everything. But if you lose sight returned, you have finished. It’s a major warning sign.
Income is the goal. It’s the end of the match. This is why you do what you do. Keep an eye on the goal – focus on the income – and it will keep you from going up in flames.
8. You don’t know your track.
Money is what keeps a startup alive. Once the money is gone, so will your business. Simple takeout? Keep an eye on this piggy bank! Don’t let your money run out.
There’s even a term for it – lead – meaning how much time you have until your startup runs out of money. So go get funding. Beg from a rich uncle if you have to. Even go as far as pledging your stamp collection. Fair to get money. The best position to be is a position of knowledge and control.
You know how much money you have left. You alone know how long your business can exist and you alone can control the cash flow.
LikendisLikeship is difficult. Really difficult. Starting a business is a failure. This can result in loss of money or loss of self-confidence. Your self-esteem can quickly decrease.
In other words, if you want to feel like shit day after day and year after year, try to start a business.
Related: 5 Signs Your Startup Is Destined To Fail
But at the same time, there is something irresistible. Yes, startups fail. And yet it means that some are going Succeed! If you can spot your warning signs, you will be in a much safer position for ultimate success.
What startup failure warning signs did you see?