You've probably heard the statistics: 70% of startups fail within 5 years, and 90% fail before reaching their 10-year anniversary. Despite this, many of us think, "Oh, that's not me. It's that other, DUMP guy." We believe that our Ph.D., MBA, 6Sigma, McKinsey experience, etc., will protect us from failure.
There are many obvious ways to fail in a startup (like running out of money). If you're an entrepreneur looking to maximize your startup's chances of success, check out these 7 hidden signs that your startup may fail:
1. Having the wrong motivation can lead to giving up too soon. Make sure your motivation aligns with the challenges of running a startup.
2. Lack of product-market fit is one of the most prevalent reasons behind startups' failure. Invest in building an MVP and testing it out with your target audience.
3. Don't let your ego get in the way of making smart business decisions. Learn how to use it to your advantage.
4. In a startup world, everything is different. Don't act ‘corporate’ and spend money unnecessarily. Take advantage of the many free or almost-free resources available.
5. Loneliness. Entrepreneurship can be difficult and stressful, but you don't have to go through it alone. Find other entrepreneurs or mentors who can share their experiences and give you a boost of motivation when you need it the most.
6. Burning out. Proactively take care of your physical and mental health. Starting a business is a marathon, not a sprint. Make sure you're taking care of yourself to avoid burnout and maintain focus.
7. Having no process. Think like you're building a franchise - have operation manuals for everything so that less expensive employees can perform the same tasks as expensive experts. This will help you scale and save money in the long run.
Needless to say, the author made almost all the mistakes from the list. Hopefully, this article will help you avoid making the same mistakes 🙂
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