A business startup is a new trend which is growing faster in the world.
Majority of the people thinks that, we should have a good and unique idea to start up a new business which will make us billionaire or at list a millionaire like Jeff Bezos (Founder of Amazon) to sell the books and other multiple products online on e-commerce store, Bhavish Aggarwal to provide the taxi services, Mark Zuckerberg to create a social networking website which is Facebook and like other many more billionaires. But no, the reality is it’s only a myth. Basically, Facebook also was not the first idea of Mark Zuckerberg, he made his first product FaceMash it was a game like hot or not. Facebook was not the first idea of Mark Zuckerberg. The first product never is the final product or does not for the success. The final product become at the last by replacing and modifying the first product as per the requirement or needs of the users or the customers. You should know that startup is not to become the billionaire overnight by working on a brilliant business idea. In fact, startup means that where you have to handle the extreme uncertainty. A startup is like an experiment where we have to learn things by testing, again and again, the experiments in which we don’t know anything about the results or outcomes and also earlier than our competitor.
Why do most of the startups fail..?
In 2012 Nidhi Gurnani and Nikhil Wason created a platform that gives reward points to users while using the card for payment it also offers various cashback and discount offers to the customers. After two years of their success journey, they were managing to raise funds around 170000$ from three investors Sunil Karla, Alok Mittal and Rajan Anandan in Jun 2014 but on 2 Jun 2017 cardback tweeted on tweeter ‘It’s the end of the journey and we are sad! Thanks, everyone for being such awesome users and supports.’ which means they are going to shut down this service. After 2014 they couldn’t raise more funds for their business but the main reason was there was no any demand from the market.
Anil Patel, he is a co-founder of Crazyegg Company. He is one of the successful entrepreneur in the USA. He raises million dollars of the fund to work on a brilliant idea. This idea was liked by many peoples and also the investor. The idea was to produce a product which will solve the problem of social media traffic of many companies. He spends one year and one million dollars for making this type of product and when they felt that now the product is ready for launch they launch their product. But the phenomenal thing was that no one any company brought this product because these companies were not needed any this kind of product, they were happy to work with their traditional style of work. So Anil Patel and his team wasted their valuable time of one year, millions of dollars and struggle for making this kind of product which was not needed for anyone.
By studying above these two cases we can understand that the reason to get fail was ‘no any need of these type of product for the customers’. And many of the startups get fail because of this same reason.
In the Startup peoples think about an idea which does brilliant as per their prospectus, So they work hard to converting this idea into reality. They work on every technical thing which relates to this idea they spend their valuable time, money and energy to making this type of product efficiently which no one is needed. Please remember that before making any product we should not ask the question our-self like Can we make this type of product or not? Instead of that, we should ask the question like should we make this type of product or not?
Many of the peoples get fail because they work on the conventional management that is to do the market research then make a good strategy and then deliver a great product, this approach is good but not for the startup. Because it is not to assume the market for the product of a new startup without launching this product in the market. Startups can’t assume response of this product in the market until customers or users do not use this product in actual. These all reasons become the reasons for the failure of the new startup but the good thing is we can avoid this failure.
Lean Startup Methodology.
Lean startup methodology gives us the solution to this problem and saves valuable time, money and energy. This concept is based on ‘Build- Measure- Learn’. As per this principle you have to make a minimum viable product, then have to measure the response and reactions by launching this product on the basis of trial and at the end you have to learn that really this idea is working like this should idea work? Or you have any make changes for the better response of the customers. You have to repeat this cycle until you get the desired response from the market or customers.
In short, the viable product is that in which product you will insert tow/ three or more key-points which are very attractive and which will like to your customers. Then make this product with minimum amount money which will only for the purpose of testing, which you can measure that is these type key points are working or not and how positively peoples are responding about these key-points and also you have t measure this in cheapest value and with the fastest speed. Remember that your minimum viable product is not your final product, it is only for testing to your idea and product so make it simple and cheaper that will cover to your critical points which is needful for the feedback of your product and also for help you to learn about the product and sales.
Now when you measure the response of the market and customers about your product and idea then you will have two options one is to do pivot or to do persevere. If your key-assumptions are getting positive feedback then you have to do persevere means you have to go ahead with this idea and have to focus on making this more better than before but if your key assumptions don’t get positive response then you have to pivot this means maybe you have to execute this idea with any other strategy or with any other targeted audience or make some changes in your product which will give you better or positive results.
Kevin Systrom A person who made a Burbn check-in application in which there was an element of Mafia Wars game and a photo clicking element he was not happy because he was not getting the desired response from the users about his application. It was a very heavy app and Kevin knew that it cannot become a huge success but after the measuring and learning he understood that users were using only one feature more often than the other features which were photo clicking feature. After knowing that Kevin Systrom took big risk with co-founder Mike Krieger and delete all the other features from this application and keep only one feature that was photo clicking feature and start working to make it better and interesting than before after this pivot Berbn become very popular app, today we all known as Instagram to this app.
Like this, you have to experiment again and again before you get the desired response from the users or market about your idea. Many of startups get shut down earlier after the starting up, because after taking the efforts for making their product if they didn’t get the desired response, either they get quite or some do the same thing again and again by expecting the different results but they don’t get any positive result and then eventually they also get quite. These two types are not perfect, they have to pivot what is needed for success. One thing you should remember that how much pivots you can handle before spending your all money or funds. So to conclude just remember that your customers do the king for all the time and your all the decisions and actions should be for making them happy not to yourself or to your team. You will get failed if you make any product which is not needful for your customers.
We learned these all the concepts from ‘The Lean Startup’ which is an awesome book for the startups. If you are thinking to start up a new business, I think you must read this book once before the starting. If you want to get this book? Just click Here.