The magic sauce for your startup shut down has been invented
They say that failure is the beginning of a real success story. But what’s the point in failing if you do not learn a thing from that failure? You have spread your sweat and pain as a breadspread on your startup and yet it failed. There might be a lot of unaccounted reasons for your startup to fail. But there are a few legitimate reasons for that happening to become a happen. What are they? Let’s look at them.
Great Plan. Poor execution.
You are great with a pen and paper than Da Vinci or Shakespeare. But what’s the use of all that paperwork when you have zero executive vantage? A great plan is as good as a great dessert recipe in a big desert. Planning must always account on how far your executive power goes.
Bad User base
You have failed to understand your users. Your customers. What you built might be a really awesome product but did the customers whom you wanted to sell really really wanted it? Failing to make sure of that means that you have dug your own grave complete with internal coffin furnishings. Having a stable userbase, understanding their requirements, satisfying them and most important of all, having the right user is important. Afterall, User=Business right?
A good team is not what you have to make sure of. What you really have to make sure of is that you do not have the wrong and bad team. Most of the startups today have a lot of people or too little people and the ratio of work getting done is totally mismatched and illogical. The word startup has become a synonym for enjoyment and people readily want to work for you just for the fun and sake of it. But make really really sure of these people and their commitment towards the company’s vision and mission.
Too Early or Too Late to launch
You were not even ready with your prototype. You have started to run before you can walk(Yeah that’s the case. Nope. Nothing Positive) Learn to walk and then try running.
But do not walk for too long, then it might be too late to run.
Knowing a perfect time to launch might be difficult but it is essential. Many startups either launch too soon or too late which result in failure.
Too Much Money
Wu Ji Bi Fan
That’s Chinese for too much of something is a bad thing. True that!
When you talk about having too much money, it means that you’re talking about raising(Maybe) millions in funding. This is NOT your money. You’re expected to start working with it. It won’t be allowed to just sit in the bank. When an investor or a VC pools in money for you and your startup, they are not going to let you sit down and simply work your way slowly. When there is a lot of fund, there will be more that that proportion of pressure.
Moreover, too much money means too much time spent to raise it. What’s the point? No, seriously. WHAT’S THE POINT?