Startups are driven by fear of failure or delight of success. Everyone starts the journey with the dream of taking the startup to the height of success. But nearly 9 out of 10 startups fail. The reason is that they don’t want to accept the reality in the early stages when signs of failure show off.
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If you have started your journey as a startup, how would you know that your startup is leading to success or failure? Let’s find out some of the early signs of startup success or failure.
Signs of Failure
1. Product that No One Wants
According to Fortune, “top reasons why startups fail is because they make products no one wants”. Another survey found out that “42% of failed startups identified the lack of a market need for their product”.
Startups come up with an idea and implement it without analyzing the problems of masses and the need in the market. If you have not gained positive feedback of the target market or there are few to none interested in your idea, it’s time to grab a paper and pen and start working on your idea from start.
2. Not Listening to Customers
Startup idea even in the early stages of failure can lead to success if you pay serious attention to the customer’s feedback and critics. However, most of the startups ignore critics and feel that they have a better idea of what they are doing and how to take in the long-run.
Remember, your startup success is all about your customers’ need. If you are ignoring their needs, you are ignoring your customers. Pay attention to what feedback you are getting and how you could improve your product to address the needs of the masses.
3. Not Utilizing Startup Funding Properly
Startups are driven by funds and play an important part in building a successful startup or ruining it drastically. If a startup is not clear on the purpose of funds, and where to utilize it, will taste the failure at a very early stage.
If you have successfully managed to finance your startup, you have to deal it with extra care. Analyze how to utilize funds in best possible manner. What areas of your company needs finance the most? If you don’t have a clear picture of how to maintain and manage your startup funding, your business is going to shut down within months or even days.
Signs of Success
1. Gaining Massive Early Traction
As a startup, when you come up with an idea, you don’t know whether it will fail or succeed. However, gaining early traction and positive feedback is a good sign of heading your startup to success.
For example, if you have an app idea and develop MVP to test your idea. If your idea is successful, you will be able to get massive attention through social media, email marketing, and other platforms. Moreover, you will also come up with the critics that are helpful in improving your app before releasing the full version. Make sure to pay attention to what people are saying about your new idea, which would be an early sign of your startup success or failure.
2. Having Enough Funds at the End
Lack of cash flow or mismanaging your funds would result in startup failure. On the contrary, successful startups are good at managing funds and have an adequate amount at the end. The reason is that they keep track of every expense and make sure to utilize it in the core part of the business. They are committed to stretch their funds in order to gain greater benefits in the long-run.
3. Having a Capable Team
No matter, how great your idea is, unless you don’t have a capable team, you might lose the momentum. People who are committed to their goals, hardworking and passionate about your startup idea will help you taste the success.
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Even if the startup goes through ups and downs in the early stages, your team must look forward and think about the bigger picture, rather than quitting. The team must contain proactive, responsible, dedicated, multi-talented and positive individuals who can take your startup to success.
