How to fail a startup 101: Just a little longer
Hello StartUp-ers,
It’s again this time of the year when startups fail. Which, by the way, is all year round.. Today, I will tell you the first “trick” of my series of amazing tricks that I used in order to FAIL miserably my startup and blow through all my savings (I am almost considering putting a PayPal “donate” button below).
What to expect from this article?
Section I: Challenge: My Story
Section II: The crucial mistake I made that set me on the path of failure
Section III: How to learn from my mistakes and be smarter than me
Section IV: Step by Step guide on being smarter than me
Section I : Story of Mine — Challenge for You
First things first— let me challenge you a bit. The following is my true story. Not the one I was feeding myself while working — the objective one.
Challenge: Identify as many problems as possible reading the passage just once. I’ve recognized 3- see how much you can find. Post in comments what you have found.
“Six months ago, me and couple of friends, decided to create a SaaS solution for the pharmaceutical sector — “A service to optimize your deal margin and give you a state of the art analysis on the market”. Unlike other “developers turned entrepreneurs” we decided to do it the smart way — The Lean Startup way. We decided to validate our assumption that the market wanted our solution. Our action plan : “Create a prototype and start meeting pharmaceutical companies to see what happens. Try to sell our future solution to them.” Three months later we became fully convinced that our solution will be much needed. Another three months later, we became fully convinced that no one will buy and we disbanded our short endeavor. At this point, we’ve blown through all our savings”
Section II: The crucial mistake — just a little longer
Looking back at our situation I’ve come to the realization that WE HAD NO CHANCE. It’s not that the world was against us, the law was too strict or the market was too tight to approach. I’ve SET MYSELF FOR FAILURE by combining two combustible elements — insecurity and perseverance.
Insecurity
Insecurity manifested in my startup in a very stealthy way. It waited a long time in order to reveal itself gloriously and winning the battle for the “forces of failure”. In my case there were signs, but I ignored them altogether. The strongest sign was my constant reluctance and avoidance of setting target numbers and deadline for the duration of the validation. I’ve later found out in Kaloyan’s ebook “The Champion's Guide To Outreach Marketing” that this syndrome is called the “just a little longer” trap.
So here it is my first magnificent failure trick:
Failure Trick #1 : Reluctance and avoidance of setting target numbers and deadline for the duration of the validation.
Bear with me a little longer and you will find out how to fight it.
Add a pinch of Perseverance
Normally being persistent and believing is a recipe for success … in the fairytales and movies. We’ve all heard the Colonel Sanders story of KFC — He was rejected 1004 times and it was the 1005th time that he made his breakthrough. One of my “favorite” quotes on the matter is :
Much good work is lost for the lack of a little more. ~Edward H.Harriman
I won't go as far as to calling it a bullshit, but I will revise it:
As much good work is lost for the lack of a little more as it is lost for the perseverance in a sinking ship
Put as much good work as you wish in moving the ceiling a little higher with your bare hands, you won’t succeed. Recognise that your thing is not working and move on.
Fail early, fail fast!
The worse alternative is what I did — have 6 months worth of time and all my savings confiscated by the “Forces of Failure”. Then you have to ask your friends, parents or girlfriend/boyfriend to buy you food.
Failure Trick #2: Persist on your precious failing idea even when all the evidence point that it is not working. Continue until you have to ask your parents or girlfriend/boyfriend to buy you food.
Section Summary: Be insecure and avoid setting deadlines and targets. Then blindly persist and believe. Then be broke and be begging for food.
Section III: How to be MUCH smarter than me
Insecurity Cure : Be a scientist
Ha ha! I bet you didn't expect this one. The image in your head when you hear the word scientist is the one of your most wildly unpopular classmate. Do you know this guy?
Erase the stereotypical image and embrace the way the scientists work. They expect quantitatively. Unlike me, you should do the same. SET YOUR DEADLINE. Set your target in countable numbers. For example, let's say You want to test whether there is a market fit for your SaaS product. Then set the following goal:
“Sell our prototype to at least 3 companies in the next 30 days”
At day 31 check the results and be impartial. Leave the emotions at the door. And most importantly — do your results analysis in the morning. I repeat:
Do the results analysis in the morning!
In the morning, we tend to be less emotional and more rational. This is a result of us being less ego depleted — therefore, you are more impartial.
Blind Persistence Cure: Be a scientist
Noo, not twice in a row! 2:0 for the scientists. Should I post the Indian guy again?
Scientists are not persistent, they follow their plan and framework. They’ve allocated this much time and resources for this task and they will spend no less and no more. Be a scientist — set boundaries and be persistent enough, but no more.
In the upper example: Do not go for 40 days instead of 30. Do not go for 2 sells instead of 3. Acknowledge the results and act upon them instead of blindly persevering.
Section summary: Be a scientist and quantify everything without emotion.
Section IV: Jedi step guide for fighting the “a little longer” trap
I heard winners love simple steps to follow. I can do that for you. Here is what to do the next time the greatest idea in the world ends up between your ears:
Step 1.Create MVP as quick as possible in order to validate the idea.
Once you have the brilliant idea generate a Minimal Viable Product to test the market fit. There are two important factors for MVPs to be minimal and to be viable. Minimal product means a product done as fast as possible with as little resources as possible. Viable means that the product despite being small still provides the benefit you are advertising.
More than often the MVP is a landing site. The example of Mint.com in this post by thegrowthlist.com is textbook. You have two options here :
- DIY site for close to 10$ done in about 168 +- 30 hours depending on your proficiency
- A professionally looking page created by http://www.buildme.site/ for 68$ done in 24 hours.
Depending on your situation the trade-off here is between cash and time+looks. I personally opt for the better looking and less time consumption than saving a few bucks. Step 2 will tell you why saving time is generally the better approach.
Step 2: Define deadline and goals for the MVP
Be ruthless scientist. Time is of the essence. Bounds are a must. The faster you execute the more motivated and satisfied you will be. Set your targets and set your deadline. It is extremely uncommon for MVP validation to run more than 30 days. Stretching more is a red flag.
Step 3a: Reach to 3F
You have your MVP ready and targets set. It’s time to enter the jungle, but let's start with the safe way. Reach to all Friends, Family members and Fools (hence the 3Fs) that you know. Show them the MVP and get their feedback and money. Give them discounts and premium services. Ask them to write a testimonial for you!
Step 3b: Outreach to target audience
When you are done playing with the Fs it's time to do some marketing. Again you have some options here:
- Create your own Outreach Marketing campaign — it is not easy but it is well worthed. The ebook I mentioned earlier teaches exactly this.(This one: headreach.com/ebook). It is going to be free and you are going to create valuable connections.
- Facebook or Google Ads — pay the behemoths for what they know. Unfortunately, these ads tend to be quite pricy.
I use the first as the byproduct of connections has long term effects.
Step 4: Analyse and decide
The deadline has passed. It’s time for you to face the reality — good or bad. Make sure it is morning(if you are still wondering why you haven't paid attention). Look at the results and answer this single question:
Do I feel more confident and motivated now than I was when I started?
The answer to this question will tell you whether you should continue pursuing this idea or drop it.
V. Now, what?
If you have the brilliant idea — follow the Jedi guide above and share the results with us.
If you are yet to be blessed with the idea for next unicorn startup — don’t be sad I will soon be seeing you in “How to fail a startup 101: When NO means NO and YES means NO”
Edit: It’s here already — click.
Love this article? Tell me in the comment section below.
Hate this article? You must tell me in the comment section below.
Resources
- http://www.buildme.site/ — Start validating your idea in as little as 24 hours
- “The Champion’s Guide To Outreach Marketing” ebook — Kaloyan’s book on Outreach Marketing. He is founder of https://wooguru.net/ and https://headreach.com/
- Find out what is ego depletion
- The Friends, Family members and Fools article
- How to validate your idea in 100$? — See what Sean Kim thinks here
