Join the social network of Tech Nerds, increase skill rank, get work, manage projects...
  • 5 Lessons to Learn from Failed Startups

    • 0
    • 0
    • 0
    • 0
    • 9
    • 0
    • 0
    • 0
    • 3.63k
    Comment on it


    “Learn from your mistakes.” It’s a good adage to live by, but as an entrepreneur, you don’t want to think about the possibility of failure. Unfortunately, starting a company is a risky proposition, and if you don’t have a solid foundation, eventual failure is a strong possibility. While you don’t want to dwell too much on how you could fail, you can learn a lot about what not to do from those who have failed—by studying what went wrong. Here are 5 lessons entrepreneurs can take from those who came before them—and weren’t successful.


    1. Validate Ideas with Customers First


    It may seem obvious that you need to make sure your product or service is something that people will actually want to buy, but it’s very easy to get caught up in the excitement of the idea, as John Rampton discovered. After pouring money into his first startup, Just a Five, he found that the product just wasn’t something potential customers wanted. Don’t just focus on what investors want—make sure the product has potential with real customers first. Raising too much money early on can get everyone excited about a product—more excited than anyone with actual purchasing power.


    2. Find the RIGHT Investors


    It may be tempting to avoid the big guys, and turn to friends, family instead for your fundraising efforts, but this can be a huge mistake. Tigerbow is an example of this faux pas—the investors didn’t know much about the business of growing a company, and weren’t able to offer counsel or step out of the way when necessary. While it might be intimidating to approach angel investors and venture capitalists, you’ll have to find the money with people who know what they’re doing, in order for your company to succeed. Don’t worry, you don’t have to take a trip to Shark Tank—but you do need to be persistent, and find the right investors for your business.


    3. Keep Your Long-Term Vision Intact


    Always keep in mind: why are you doing what you’re doing? What’s the long-term goal? In order to grow, entrepreneurs need to focus on both growth and maintenance. Meetro, a social network, did well in its original market of Chicago, with the founders creating incredible buzz around the platform. When they tried to expand to the Silicon Valley market, however, they dropped off their efforts in Chicago—which dropped users’ interest in the platform. Moving too fast while losing sight of your long-term vision can cause the hard work you do to fizzle out if it’s not nurtured.


    4. Be Adaptable


    Planning is essential to building a business, but not everything will go according to plan. Carrie Kerpen knows that stubbornness can be an entrepreneur’s downfall. Be ready to pivot when it’s clear a strategy isn’t working—and let it go.


    5. Build a Solid Team


    Entrepreneurs are hard-working, resilient, and wear many hats. At a certain point, however, it’s time to relinquish some of that control, and delegating can be difficult. Once you have more money and responsibility than you can handle, it’s time to start discovering your leadership style, and build your star team. You don’t have all the skills you need for success which proves the importance of finding the right people and then letting them do their thing!


    Don’t Give Up


    While eventually, all of these founders had to give up on their startups, many of them went on to found other companies. It’s important as an entrepreneur to develop the resilience to help your business succeed—and the strength to move on if it’s time for a new project.

 9 Comment(s)

  • "The fact that you are learning only from success is a deeper problem than you imagine … drawing conclusions only from data that is available or convenient and thus systematically biasing your results."  We love a good entrepreneurial success story — entrepreneur as protagonist overcomes obstacles and builds a thriving, successful company (and become wealthy while doing so). We want to hear about, learn from and even replicate what they’ve done. Essay Writing
  • Yes it is absolutely during the study mostly students face a many problem about their homework and assignments, that's why they feel difficulty and then get the bad remarks in exam. Write my essay service always together to the students. They help to the students in their assignments projects.
  • These points are very helpful for the students and I hope students must get the lesson in this post. Those students facing a problem in a study so their should that see the post and learn study tips. Well, I recommend the students if they want to need a help in education about writing so they can also use this one writing term paper. They are also very reliable for the students.
  • Another spectacular article @RyanAyers. I’m impressed by the way you’ve showcased the 5 essential lessons from failed startups. Thanks for the valuable post!

    I believe “Continue building the business” can also be one of the lessons, better learnt early. No matter how good the product startup has, but if the company does not grow, business isn’t going too far. Marketing the startup with right tools and technology paves the way for new opportunity and successful client pitching.

Sign In

Sign up using

Forgot Password
Fill out the form below and instructions to reset your password will be emailed to you:
Reset Password
Fill out the form below and reset your password: