The difference between a failing startup and the ones that succeed
A little economic notion called demand goes a long way in explaining everything that matters…
These days I see so many resources and footage dedicated to starting new businesses. Every week thousands of new apps get created (some of them entertaining) that join the pile of their failed predecessors. What’s the reason for this? Well it’s the same reason that America succeeded as a country against Imperial Britain… The DEMAND was there!
When the demand is there, everything all of a sudden seems magically easier. You have a lot more customers, you make a lot more money and you become an instant success overnight if you are the only one that’s supplying. No need for LEAN — simple economic theory does a very good of explaining why some businesses succeed. And it does a very good job of predicting why your business might succeed or join the pile of skeletons.
Execution counts, but even if you are a farm animal that supplies the cocaine, well then you become a very rich farm animal. Because the demand is there. Every multi billion dollar startup succeeded because they addressed the need of enough HUNGRY people that collectively would pay a billion dollars.
Take a step back back and think! Don’t ask “do people really need this?” Instead what you should be asking is “How many people really really need this?”.