18 Mistakes that Kill Startups
Paul Graham (overall smart-guy and Y Combinator partner) has put together a great reference list of the issues that can kill startups. If you are an entrepreneur, print it out and put it on your wall. Or everyone’s desk. The full list is here.
It is better to go into a situation eyes-open than eyes-closed, and a list like this is good to re-read every 2 weeks as a reality-check. Experience counts…and having a spotlight on the punji sticks and craters around you will only help you survive the jungle. (yes, that’s 4 clichés in one sentence!)
An unordered list of some of the most important items;
- Derivative Idea - the “me too” plays rarely work. Find a real problem that is not being solved in an elegant manner. Fix it.
- Raising too much or not enough money - There are two separate entries on this. This is a hot topic and frequently debated. There is a fine line between the two and even “smart” money comes with strings attached
- Having no specific user in mind - I love this one. Great insight here about building a product for a specific target market AND user.
- Launching too slowly or too quickly - two entries here that highlight the challenge of getting your market entry timing right, and making sure all elements of the business are ready to go.
One of the big take-aways from this list of mistakes is that there are errors to be made on both sides of any key decision. Starting a company, raising money, launching a product, etc. is like walking a balance beam. Swing too far to either side and you fall off. Perhaps this helps explain why so many startups fail, and why its so much harder than it may appear to be to actually create a successful business. There is a plethora of data, precedent and metrics out there to look at, but getting it right is still an art form.
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October 28th, 2006 at 12:07 am
Interesting, my own list for startup success begins with three success factors. Easy for me to say in this blog but if it was my money….. 1) A top-notch management team that had done several high-tech startups before (especially the CEO). 2) IP - intellectual property preferabley defenseable and patent-able. 3) An extremely competent HR person that is capable of putting the team together - maybe even a technologist themselves (hard to come by). My thinking is that if you can get a top-notch team together (management and staff) then you have what it takes to get by the 10,000 or so critical decisions that you have to make - not to mention the major course corrections too.
November 9th, 2006 at 5:53 pm
testing comment faces…