Productivity Boost: Prevent Failure | Philip Hofmacher | Skillshare
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6 Lessons (20m)
    • 1. Introduction

      1:12
    • 2. 20 pitfalls

      1:13
    • 3. #20 until #16

      4:41
    • 4. #15 until #11

      4:41
    • 5. #10 until #6

      4:05
    • 6. Top 5 Reasons

      4:21

About This Class

About 92% of all startups fail. In this course I'm going to show you the top 20 reasons why they fail and I'm also going to teach you how to avoid these pitfalls.

I spent years working with startups and seeing almost all of them fail. Only a few succeeded. Part of my report is based on information I gathered on cbinsights, a lot of import come from talking to founders myself about why they failed and also from several inputs of startups specific speakers.

Background music: http://www.bensound.com
Images designed by Freepik

Transcripts

1. Introduction: Hi, guys. My name is Philip. I love stops. Start ups. Also in a way, startups most start ups simply rock. Also one big problems 92% or simply fail in my cost Going to teach you the most common reason by stops field And also going to show you what you can do. Your star, your business, your future business safe. I want you to take this gas. Also making all the points that tell you you can use this notes for your project because it's approaching that. Won't you give me a little feedback about things for about When I told you all the reasons you for yourself decide and I go at this. Do I have to prepare myself more here in a bunch of to these this approach also leave. Please join us. 2. 20 pitfalls : Hello, guys. Thank you for joining my chaos. As I promised you. I'm going to teach you old important reasons why startups field since many startups off multiple reasons for the failure, you will see the chart highlighted. The top 20 reasons doesn't add up to 100%. It far exceeds it. This is because most of the startups quoted more than one reason why they failed. I want to say thank you to all the startups. Check their mistakes so that we can all learn from them. Life vital. Emerson wants said our greatest Chloe, it's not in never failing but rising up. Every time we fail, I want you to keep this growth in mind because it really describes how important it is failed and to learn from your mistakes and to stand up again to keep going and going and going until you succeed. Okay, let's get started with the top 20 reasons. Light startups fail 3. #20 until #16: failure to people when necessary at people is a structured cost correction designed to test the new fundament. Deputize is about the product strategy and engine group. Failure to people necessary means Founder ST too long on the track when it would have been better to leave the road and move into another direction. For a young business, it is very important to look for possible people's. It's always better to change the direction to flow down than to win its first. It's possible into the wrong direction, meaning it's better to produce the right product. Then the product always twin does because if you have between, it's good for you. But if no one is really divide, which dreaming you won't succeed. But this it's much better to produce something that people are really willing to buy. So if it's necessary, please always consider people think burning out. Most of the stuff found us really work hard. They coat the end night, the room from one meeting to another, and they try to spread the word about the new business as many people as possible. In addition, starting a startup comes with a big risk. I found this often face a lot of pressure because the financial future is on the line. Many founders are literally old in some of them. Don't want to do anything else than work. This comes with a big risk. If you don't take care about your work life balance, it's possible for you to risk burning out. To avoid this, you should always Cheryl enough spare time to work out, meditate or spent quality time, friends and family, sometimes less work assaults in more achievement, not engaging your network enough. Many found us. Don't use the full power off the old network. If you decide to start your own business, you should use each and every chance to sell what you up to. A lot of people don't want to sell to their own friends, for example, for many stops are afraid to ask for advice, help or support. Take a look at the old existing network. I bet you already know plenty of people that can help you in various parts off your daily business, but they can only help you if you let them. So step out of your own comfort zone and approach them. You will see awesome results within no time legal challenges startups a known for their ability to do things differently and find new ways to solve a problem. Thes new ways often include new legal challenges. Because of this, it is very important for founders to have a good relation with at least one lawyer. Many law firms off start up incubation programs where they teach all the relevant things. Found us. Many off thes programs come for special pricing for the creation off Our Tickets Inc patent it wise and many more. Try to find it. Least one law firm in your city that works with startups and start building a relationship with them one day or another, you will need to help no financing or interested investors. Startups often complained that there aren't enough investors that can provide the needed amount of money to start up. Needs to profess many of the founders with too much time approaching the wrong investors. Before you contact an investor, make sure it is the right one for you, and you are the perfect fit for him. Check in which industry the investor or business angels invested before what amount of equity he's expecting and how you can benefit from his network. Always keep in mind. It's not only about the money, it's about two doors. A new partner can open for you. 4. #15 until #11: location. There has to be a perfect fit between your startups concept and your location. For example, you will have a hard time selling sent in the chest while you will make easy money if you're the only one selling brought up here. But it's not only about supply and demand, a new business needs good competition, too. Cruel competition is key, as many people like to say. Because of this, many startups are founded in technological hot spots off big cities like Silicon Valley off Boston. Farmers who live in this city's connect with many like minded people and boost the company's two completely new. Never. But you don't have to start your own company in one of these cities. You can start wherever you are and relocate business later. Lack of passion and domain expertise. There are plenty of founders who come up with really good ideas, but an idea is only the easy start. Turning your idea into a business is a much bigger challenge. Everyone can come up with the idea to build, for example, uber for space travel. But to succeed with this idea, you need a lot off money. Even more important, you will need a lot off the main expertise. You need to know everything about building a space shuttle on how to fly into that space. And last but not least, we will need a lot of passion because you won't make money. Today you start, you will get knocked down several times for different reasons, and you will have to stand up 1000 times before you will succeed if you even succeed. People going back previous in discuss told you about how important people can be. Frank, some instagram and scruple had to pee vote before they started to succeed. So you see that people can be very powerful, but it can also destroy business if your people into a completely wrong direction. For this reasons, founders should think more than twice before they decide to people into a completely different direction. This harmony with investors and co founders bringing a co founder or an investor into your business. It's like a marriage. Most startup founders spent more time with the co founders than with their own families. Business partners don't need to be good friends, but what they need is to be able tow back fruit good and also bedtimes. To avoid fights, founders should set some rules right from the beginning. Thes rules should include things like voting rights, proportion of equity and what happens when one of them wants to leave the company. It's very important toe have this things written down. This is not an easy task, and a lot of people don't want to do this because they think things like this will never happen. But you can trust me. Everything can happen. I really want you to clear things things, because it's much better to have it written down and not needed instead of the other way around. Lose focused. Many startups fail because they lose the focus. Get distracted for personal reasons. A side project. My tip for you before you start your own project, it's make space in your life for it so you won't be able to get distracted with space. I don't mean for three hours a week. No, I mean that you get your next cover off years to this business and normal start up Founder has no time to become a father and roll into an M B A program or build. A House founder has to hostile at least 80 hours a week to kick start his business 5. #10 until #6: wrong timing, but often sounds like an excuse is the brutal truth. You can do everything right in your business. Still fail when the timing is wrong. For example, if you would have had the idea for Facebook right at the beginning off the Internet, you would have had no chance off succeeded. The same is true if you have the idea for a new social network today. There are so many social networks out there right now, chance off becoming a star in this industry is about Syria. I'm not saying that it is impossible with only saying that the timing isn't right. Today, in knowing your customers, the customer is always king. I always tried to listen to them. It's always more important with your customer feels than how you feel about a specific situation. I'm sure you would prefer selling cast in a color you don't like. Instead of sitting on beautiful cast, no one wants to buy used each and every chance to collect the customers feet back and use it to improve your business. Never forget to interact with your customers. They laughed. The feeling off, being cared about and table thank you for poor marketing, knowing your target audience and knowing how to get their attention and convert them to Leeds and ultimately customers. It's one off the most important skills off a successful business. Many found us, especially these great products off software, know right from the beginning of the product would look like I don't think off is how they are going to promote and sell it before you start writing the first line of code. Creating the first prototype spent time on how your marketing mix should look like leg off business model. Having a great product is the half way to success, but alone it is nothing. Every product needs a business model unless you are planning to be a non profit organization. In the best case, you find the business model you can easily scale and which has several income streams. Scaling a business means that it's easy for you to sell your product to as many people as you wish without significantly higher coasts. For example, EPPS, the only cost you the price you have to pay for the development. Despise doesn't change if you sell it toe one million instead of 1000 people. When planning your business model. Always look for a Plan B. For example, What are you going to do if bond off your revenue streams, it's going to break away who are product. Many founders quoted that they failed because their own product wasn't good enough. Keep in mind the church is your customer. The product needs to provide value to them, and using it should make them feel good in the software industry. For example, product that sell the best at thes wants, which the best user experience you've softer can provide as much value as it bonds. If your users don't like working with it, they will not become your customers. 6. Top 5 Reasons: pricing and cost issues. Pricing and cost issues often appear not only to start ups, but start ups have some very unique problems because they often produced new solutions to product, don't have direct competition, and for this they don't know how to set the prices. For example, it is possible to avoid this problem by offering different levers services like beginner or experts of scriptures. A beautiful way to attract customers through pricing is to offer a free trial because once they started loving your product, the price isn't the biggest problem anymore. Get out competed. Competition is keep, I said before, but there are many different ways to deal with it. For example, Wants Sam Walton said, Control your expenses better than your competition. This is where you can always find the competitive advantage. Also time sometimes what you battled with your competition. In many cases, the 1st 1 that hits the market with a finished product gets the most customers. But this is not always true. For example, who wasn't the first search engine on the market, but it was the first search engine have made an awesome chop. For all these reasons, it's very important to people I on your competitors always tracked. The movements do, but they do, but better not the right team. I told you before that founders don't need to be friends. Founders should also don't have the same skills a team of founders should have. Old important skills needs to succeed in this industry. For example, if the startup is going to create a high tech product found, this team should be able to create this product and also be able to sell it. Most of us don't have both skills. In this case, it's time to team with someone who brings the other half off the skills to the table. Don't partner with first best person who's willing to join your idea. Set yourself clear and defined timeframe and talk to us much potentials as possible. Then decide who's going to be your business partner. Take yourself time. This could be run off your most important decisions in life. Running out of cash. Many start upset running out of cash when asked why they failed. This reason is most of the time of the salt off, many off the other reasons, a torture before for sure. Some start ups also raise demonic things like fancy offices, new homepage or stuff like online advertising start ups. Also off to run out of money because they don't manage it to get a new round of funding just in time. Less, but not least, many startups build a solution and then look for the problems they think they sold as an effect to produce for duct, which no one wants to buy. Better way for startups would be to select specific problem and then figure out a way how to solve it. Start ups also keep their ideas much too long a secret. It would be much better if they would talk about the ideas and collects much feedback as possible. Then use this feedback to adopt the ideas and finally produce a great product the market really wants to buy. Thank you for joining my class. Feel free to leave comments. Don't forget to tell me in your project about how you're going to avoid this common business trips. Good luck with your business