Entrepreneurship is like the ultimate adventure, right? You’re out there to build something from scratch, bring a revolution, and maybe even become a Unicorn. Who knows? The possibilities are endless! But sometimes, your brilliant idea just doesn’t resonate, and you might have to consider going back to the white board. Yes, You might think you’ve got the perfect idea, but guess what? The market may not agree. And that’s the most uninviting part of the entrepreneurial adventure. But as I always say, Fret not! Every successful entrepreneur out there has faced these challenges and come out stronger. So, with this blog I am going to enlighten you with the shocking truth about startup failures – And ways to overcome them!
In business schools & entrepreneurship programs, they teach you all about market strategies, finance, leadership, & how to make a convincing pitch. Ofcourse! Afterall, they’re grooming the next generation of innovators and business leaders.
However, there’s a pretty big gap in the curriculum, one that leaves aspiring entrepreneurs ill-prepared in the world of startups. Now, in order to bridge the gap, we will discuss certain aspects of startup failures that go undermined by entrepreneurs. By the way, do you know that TheCodeWork has a published blog on Why Many Startup Founders Fail: why not give it quick attention.
Now, in order to identify the problems and find ways to overcome certain aspects of downfall. Let’s unravel the truth about startup failures.
According to research, approximately 20% of startup failures happen within the first two years. However, the journey only becomes more perilous as time goes on, with a staggering 45% of startups succumbing to failure within five years. These numbers are not meant to discourage you, my friend. Not at all! I am just pointing towards the big wave ahead, so that you surf through it like a champion.
Remember, the key is to learn, adapt, and keep working towards that next big win. So, let’s win it!
The failure of the Segway, often touted as one of the most hyped and disappointing product launches in recent history. Their story provides valuable lessons in understanding the consumer market and debunks the myth of overnight success. Before its official launch in December 2001, the Segway was shrouded in secrecy and media hype.
It was even referred to as a potential “next big thing” in transportation. The anticipation and expectations were sky-high!
Despite the hype, Segway’s practical application turned out to be quite limited. It was designed to change the landscape of urban transportation, but it succumbed to several challenges:
The creators of the Segway believed it would become a mainstream mode of transportation, much like a bicycle or scooter. However, they misjudged the consumer demand for such a device. While it had applications in niche areas like tourism and law enforcement, it did not find mass-market appeal.
In 2020, it was announced that the Segway brand would cease manufacturing two-wheeled personal transporters for consumers, marking the end of its journey in the consumer market.
Now, from where do I seek mentorship? You ask. Chill out! Remember, if I advise you something, it means I am gonna show you the path as well! You can join our LinkedIn startup community, where founders and entrepreneurs discuss & share ideas and everything related to the domain.
Failure is not just a statistic; it’s a deeply emotional experience. When Brian Chesky and his co-founders, Joe Gebbia and Nathan Blecharczyk, launched Airbnb in 2008, they faced an uphill battle. Their concept of allowing people to rent out spare rooms or properties to travelers was innovative but unproven. But in today’s date, such a scenario can be avoided! How, you wonder? Well, build a MVP (Minimum Viable Product)!
Contact TheCodeWork to test your MVP today! So, back to the AirBnB story…!
In the early days, Airbnb’s founders faced financial difficulties. They were not generating significant revenue, and their personal savings began to dwindle. Because, Airbnb’s concept of people renting out rooms or properties to travelers was met with skepticism & rejection by many investors. They doubted the viability of the sharing economy model and were concerned about potential liabilities.Hence, The founders faced numerous rejections and challenges in securing funding. As Airbnb grew, it faced legal and regulatory challenges in various cities and jurisdictions. It posed a significant threat to Airbnb’s business model.
The emotional toll of these early struggles was significant. Chesky has spoken about the anxiety and self-doubt he experienced during this period. The uncertainty of whether Airbnb would succeed or fail weighed heavily on him and his co-founders. They were not only risking their financial stability but also their reputations.
Despite these emotional challenges, Chesky and his team persevered. They continued to refine their business model, improve their platform, and invest in building trust among users. Over time, Airbnb began to gain traction, and its unique approach to travel accommodations started to resonate with users. Today, Airbnb is a household name and a dominant player in the global hospitality sector.
But Prevention is always better than cure! So, you may consider enrolling in India’s First Ever Zero-Equity startup Ecosystem Program to master your research before getting started.
For young entrepreneurs, the journey can be particularly grueling. The emotional toll of failure can be overwhelming, leading to anxiety, depression, and a crisis of self-worth. But, that’s not something to give up for.
In the world of startups, the saying “it’s not what you know, but who you know” holds significant truth. Building a platform as complex as Facebook required a deep understanding of computer science and programming. In its earliest days, Zuckerberg faced technical challenges and limitations. He had to continuously refine the platform to ensure it could handle increased user loads and feature expansions. Despite securing some early investments, Facebook operated with limited resources in its early years. The team had to manage servers, software development, and customer support with a small staff and minimal funding.
Zuckerberg’s connections at Harvard enabled him to form early partnerships with other student entrepreneurs. One notable example is his collaboration with Eduardo Saverin, who provided early funding and business expertise. He was able to recruit talented developers and collaborators from the Harvard community, including- Andrew McCollum, Chris Hughes, and Dustin Moskovitz, who became key members of Facebook’s founding team. Also, Zuckerberg received valuable mentorship and advice from Steve Jobs. Jobs provided insights into product design, user experience, and business strategy, which influenced Facebook’s development.
Overall, Facebook’s early success can be attributed in large part to the networking opportunities it leveraged within a global community.
And, here’s how you can foster your networking skills too:
To achieve it! Join a LinkedIn Startup Community today.
Bonus Pointers!
Insights: Research by the Small Business Administration (SBA) in the United States suggests that startups with access to a support network are more likely to survive
So, be your authentic self to build trust and forge genuine relationships. By following these principles, you’ll not only expand your network but also enrich it with meaningful connections; that will drive your personal and professional growth as well.
Resilience is a trait that often separates successful entrepreneurs from the rest.
Starbucks, now a global coffeehouse chain with thousands of locations worldwide, faced significant challenges and failures in its early days. The company’s initial inspiration came from a trip to Italy, where they were impressed by the coffee culture & espresso bars. They aimed to bring a similar coffee experience to Seattle. The founders believed that the main focus should be on selling coffee beans, with little emphasis on in-store consumption. This limited product offering meant that Starbucks had a niche market and was not catering to a broader customer base.
Starbucks entered a highly competitive market with established players, including local coffee shops and large fast-food chains. The company had to find a way to differentiate itself and attract customers in a market crowded with coffee options. Their turning point came when Howard Schultz convinced the founders to experiment with selling espresso-based beverages; and create a more European-style coffeehouse experience. This shift in strategy marked a pivotal moment in Starbucks’ history.
After embracing Schultz’s vision, it led to substantial growth and the emergence of Starbucks as a global coffeehouse chain. The resilience demonstrated by Starbucks during its early struggles was crucial to its survival and eventual success. Also, the company’s willingness to pivot, innovate, and adapt to changing circumstances played a significant role in its transformation.
So, Don’t fear the Feedback- Just Embrace it! TheCodeWork’s MVP Development program is all about creating a MVP that meets the needs of both the business and its customers.
Pro-tip: Remember Your ‘Why‘- Reconnect with your initial passion and purpose for starting your business. This ‘why‘ can serve as a powerful motivator during difficult moments.
Enough of startup failures , let’s move on now. It’s time to draw inspiration from the stories of remarkable individuals who faced seemingly overwhelming challenges and emerged stronger:
Undeterred, he went on to found NeXT Computer and also acquired Pixar Animation Studios. In 1997, Apple acquired NeXT, and Jobs returned to the company he helped to found.
Today, Amazon is not just an online retail giant but a global technology and e-commerce powerhouse. It has diversified into cloud computing, digital streaming, artificial intelligence, and more.
So, you might have figured already that I am going to talk about his unwavering dedication whilst building Tesla & SpaceX. Ofcourse, they are exemplary! But, Long before, SpaceX & Tesla:
Musk faced perhaps his most significant challenge with SpaceX and Tesla. SpaceX endured multiple failed rocket launches before achieving success. Tesla faced financial troubles and was on the brink of bankruptcy at various points. Today, SpaceX has become a leading aerospace manufacturer and transport services provider.Also,Tesla is at the forefront of the electric vehicle industry.
These stories remind us that setbacks & failures are not the end of the road but opportunities for growth & eventual triumph.
In the end, the journey of entrepreneurship is not a straight path but a winding adventure. It’s a journey where each setback is a lesson, each connection is an opportunity, and each failure is a stepping stone to ultimate success. So, to all the aspiring entrepreneurs out there, I understand that the road you’ve chosen is not always easy; The challenges you face can sometimes seem immense. But remember this: every twist, every setback, and every obstacle is a vital part of your entrepreneurial journey. Startup failures are what that leads to success through the lessons learnt.
You’ve embarked on a path that’s less traveled, one that demands courage, creativity, and unyielding determination. So, don’t let these certain aspects of startup failure deter you. Instead, let them empower you. Let it be a source of motivation to persevere, adapt, and grow.
So, keep moving forward despite the stories of startup failures around you – for the world eagerly awaits the solutions, innovations & positive change that you will bring.
And remember, TheCodeWork is always there for you.
Book a free consultation call, today!
