Why Startup Fails?
When we think about to open company we only think our point of view, like we have great ideas, great product but never think about what customer want or not.in these competitions we have to think about all perspective ours or others.
So here are top reasons why startup fails
- Rigid plan
Many entrepreneurs come with the plan to open company, their plan is not flexible which can change according to market or what customer want. They think what they are making that is the best and they have to just follow this plan.
- Fear to pivot
When their plan is not working they give their most time to their vision and strategy but not go for market research so that they will know lacking points on what they have to work on. They have always fear inside what happened if they will use pivot or change the basic strategies and startup fails.
- Lack of validated data
When company did research on the product their data is distributed among various employees and each employee give their feedback on their educational background because of this data become complex. So for this we have hire experts which can make this data into simplest form so that with that data we can use time and energy on validated learning. Validated learning always helps to increase efficiency of work, so that we cannot give our tone and passion on scrap data.
- Experiment
Many entrepreneurs when their company fails they think that their life has gone and went to depression that the energy and time they gave all gone what our societies will think they take startup as life not experiment. So always take startup as experiment and give your best because failure give experience on which you are lacking and teach you to get success.
So the” 5 principles of Lean startup” which we have to think about before open company:
Entrepreneurs are everywhere
Mentality of people are that they have to leave their job to become entrepreneur, but this is not right startup means: A human institution designed to create new products and services under extreme uncertainty condition. So it may happen that person “Entrepreneurs “belong to big company or small company or other who has that vision to change societies thinking.
Entrepreneurship is management
Startup is an institution, not as product but it can also require a new kind of management which have to work on under extreme uncertain condition.
Validated learning
Startups exist not for to make new stuff, make money or even serve customers. They exist to learn how to build a sustainable business, for this entrepreneurs have to always ready for experiment to each element of their vision.
Build-Measure-Learn feedback loop
The main motive of startup is how they will turn their ideas into product and how customers will respond and whether they have to pivot or preserve their strategies. So every startup has to accelerate this feedback loop to use it as validated learning.
Innovation accounting
For improving Entrepreneurial outcomes and hold innovators accountable, we need to focus on the boring stuff, how to measure progress, how to setup milestones, and how to prioritize work. This will happen only by using Innovation accounting very well.