There is a high chance that your startup will fail, but if all startup companies were successful, everyone would be an entrepreneur. A number of factors can make an impact on your business, some of which you can and some you cannot. One thing is certain, you will need more than a great idea for building a business.
“Learn from failure. If you are an entrepreneur and your first venture wasn’t a success, welcome to the club!” – Richard Branson
Don’t fear failure; many of the world’s most successful people have failed several times before getting it right, and a lot of the world known companies were their founders’ not first startup company. Investors often ask entrepreneurs about their previous failures and the prior mistakes they’ve made. Failing at something is not necessarily a bad thing. Learning from past mistakes is often critical to future success. Investors won’t be shocked to learn that you’ve failed before. In fact, they themselves have probably experienced one or two failed ventures.
Who had a startup failed before making it big?
So, let’s take a look at some successful people that have experienced failures along the way:
Steve Jobs and Lisa
Virgin’s Richard Branson and his Student Magazine
Nick Woodman who was a ‘B student’ during college and who, before creating the now wildly successful brand of wearable cameras – GoPro, failed in great style with two online startup companies during the crazed dotcom bubble of 2000.
You’re probably unaware of these failed ventures, but you’re very familiar with Apple, Virgin and GoPro. These companies are just the tip of the ice berg; The product of lessons learned and a commitment to never giving up!
Failure is feedback! It’s hard-earned lesson or an opportunity to pivot!
In addition, we must remember that success is never a guarantee. According to statistics, 90% of startup companies fail. While this may seem bleak, there are some very common reasons that startup fail. Some of these reasons include the following:
- No market need
- Ran out of cash
- Not the right team
- Pricing/Cost issues
- Poor product
- Need/Lack business model
- Poor marketing
- Ignore customers
- Product mis-timed
- Lose focus
- Disharmony on team/investors
- Pivot gone bad etc.
In conclusion, don’t allow the fear of failure to drive decision making. If you have an idea for a startup, pursue it vigorously. So, even if you fail, you’ll learn priceless lessons that will help you succeed later on.
To succeed in life, you first must fail.
Want to know more on why startups fail? Read about mistakes that startup companies make.