The Challanges of Building a Great Startup
Needless to say that building a great startup requires grabbing different sources of knowledge. As Roy T. Bennet once wrote, “ When you start living the life of your dreams, there will always be obstacles, doubters, mistakes and setbacks along the way.But working smarter and harder, with perseverance and self-belief there is no limit to what to can achieve”.
However builinding a startup is hard and most likely tough.Studies found failures rates between 70% and 90% within 5 years.
During my career I have experienced difficulties and, some how, I have been there myself. Whilst my friends were hanging out, wondering around and having fun across a range of university parties, I was putting in sweat and tears to meet the goals. Not to mention to take your startup off the ground.
So why do most people fail at building a great business? Why are most people on track to never start a business?. BECAUSE THEY DO NOT CARE TO LEARN HOW.
“If you want something new, you have to stop doing something old”- Peter F. Drucker whilst I would prefer the following advice ” Try not to become a man of success.Rather become a man of value”- Albert Einstein.
In this regard , it is worth reading the book ” The Four Steps to the Epiphany“. In short , the autor points out every great business is built in four stages:
- Customer discovery- Digging into customer problems and needs to determine which customer segments you should be working with.
- Customer Validation– Determining the right way to sell the solution to this customer segment.
- Customer Creation– Scaling up sales to create and drive customers.
- Company building– Optimizing processes so as to opérate effectively and efficiently.
The main reason most people fail lies with focusing on the forth step from the start before knowing how their customers perceive the added-value.
Bringing Steve Blank´s position on board: ” In the early stages of a startup, focusing on execution will put you out of business. Instead, it is strongly recommended learning a discovery process so as to get the company to the point to exactly know what to execute “.
Not knowing how to make the life of your customer better is extraordinarily alarming. Research even found this is the top reason why a startup may well fail-accounting for over 40% of all startup failure. As long as you never learn what value constitutes- and learn how those you work with and for want to receive it- you will always build dingy businesses.
Creating value is hard enough. It requires empathy, honesty , openness for feedback, and humilty to give your potential customers the attention they deserve.
But failing is much harder.
The reason your business is mediocre is because you are yet to learn enough about creating value.
Last but not least, our recommendation is that you manage to get advice from seasoned Senior Directors to assist your company with the challanges ahead.