Failures and Successes of Startups: Lessons to Learn
Launching a startup is easier said than done. It is common knowledge that creating a startup takes time, money, and a lot of effort. It can be daunting and exhilarating at the same time.
Many startups, within a year of their launch, fail to see the light of day. However, don’t let this discourage you. You don’t always have to crash and burn to learn from your mistakes. One of the best ways to go about creating your startup is researching and learning from the mistakes made by other entrepreneurs and steer clear of them while you build your empire.
Although reading stories of someone’s success does give you hope, the challenges they face are often ignored. These lessons from failures and successes of startups will give you an insight into the reality of the world of building startups.
Having the Right Business Partner
Neil Patel, an entrepreneur, shares on his blog the lessons he learnt while building his startup “CrazyEgg.” His initial criteria for choosing a business partner was someone who was his friend and had graduated from an Ivy League institution.
He launched CrazyEgg with someone that fell into the criteria and it cost him a fortune (around six figures) to buy his friend's shares and pay the lawyers’ fees after his friend sued him for mismanagement of funds.
The business partner you choose should have skills that complement your own skill set. The co-founder of your startup does not have to be your friend but should someone who is trustworthy, flexible, and reliable.
Getting Feedback Before the Launch
Juicero was founded in 2013 and the product they were selling was a $699 luxury juicer that connected to the Wi-Fi.
People were not very pleased with this expensive juicer which eventually forced the brand to sell their products at around $399. The price was not tested before the market launch of the startup, which cost the company to shut its operations after a few years.
Before you launch your product, you should ensure to do a market research and get feedback about your product or service before you launch as it could help you improvise and provide a viable solution to a challenge faced by the society.
Helping Solve a Problem
Many successful companies whose products we know and use today have also faced turbulent times before achieving global success. When launching a startup, one of the most essential elements is to ensure that it helps solve a problem faced by the society.
We have listed a few examples below.
Reddit: Alexis Ohanian, in an interview with foundr.com, said that an investor refused to invest in their initial idea which was a mobile product and asked them to build something for the browser that helps solve a problem. This is how the idea of Reddit was formed.
Kissmetrics: Neil Patel started his company Kissmetrics, and on his blog, he explains that he started the company because he liked the product which analyzed analytics without keeping in mind what the customers wanted. It took around three iterations for Kissmetrics to become a success after the product was made viable for the public.
Airbnb: Airbnb was started out to solve the problem of travelers who were on their way to San Francisco for a design conference and the hotels in the city were fully booked. The founders rented out three mattresses initially but are now a global company that solves travelers' problems every day.
It is important that your product solves a problem and is built for your customers and not just yourself. This contributes a great deal in the success of a startup.
Creating a Plan
Planning is essential not only for a company’s success but also in the case of failures. It is important to engage in the planning process and plan for the worst situations possible.
This is because nothing in a business goes according to one’s fixed plan. So, modifying strategies and planning for various situations eliminates the state of unawareness that a founder could be in.
Every startup founder faces challenges every step of the way and not just at the beginning. However, you, as a founder, should face and get past these difficulties and find ways to better manage similar challenges in the future.
Starting a Business in Dubai
Dubai is one of the fastest-growing business hubs in the MENA region. With business-friendly provisions, visa benefits, state-of-the-art technology and infrastructure, a hassle-free process, and much more, Dubai is one of the best places to build a startup in.
However, before you set up your new venture, it is essential to have the right advisor by your side to help you strategise and scale.
How can Ascent Partners help?
Ascent Partners is a boutique consultancy providing bespoke, end-to-end corporate services ranging from company formation to accounting, bookkeeping, and compliance services for entrepreneurs looking to set up their next venture in the UAE. We work alongside to strategise, startup, and scale businesses in the UAE and the broader region.
With a combined experience of 50+ years, our expert consultants provide reliable and unparalleled guidance throughout all strategic phases of a business' evolution.
To know more, Get in touch with us at ask@ascentpartners or 04 422 7339 to start up and scale your business