The concept of “startups” has become so widespread that it has been obscured by industry stories, norms, and media. Every year, around 472 million entrepreneurs are founded, and 305 million startups are created. About 1.3 million of these startups are tech-related. Most of these startups fail, regardless of industry. What’s the secret to 90% of failed startups?
These are the top 3 startup myths:
Myth #1: Startups must have an original idea to succeed
Many believe that a startup can be described as a young company with a unique business model, looking to make an immediate impact on the market, and then takes over. This is a grave myth. Many people believe this myth because many startup success stories are based on unicorn stars like Elon Musk, Larry Page, Jack Ma, Jack Ma, and Mark Zuckerburg.
But this doesn’t reveal the real reason they are so successful. It is their business model, product positioning, and customer service, not their unique idea. Facebook is not the first social media network. It is a clone from the house system, Myspace. Google was not the original search engine to invent search monetization; Overture did. Zynga was not the one to create Farmville. Zynga borrowed Farmtown’s game. Farmtown was a copy of HappyFarm in China. Microsoft Windows wasn’t even the first GUI OS. It was technically inferior to other OSes, but it won the market share war with Apple and IBM. Microsoft knew what consumers wanted better than Apple or IBM.
Myth #2 – If you build it, they will follow.
The second mystery surrounding startups is the “if you build them, they will come” controversy. Because it’s a myth that has hindered my progress as a young entrepreneur, I call it controversy. And the statistics speak for themselves. Research shows that 21.5 percent, 30 percent, and 50% of startups fail within their first year. The fifth-year is a tough one. In the tenth year, 70% yield. Many have invested their time, energy, and savings in startups over the years. They believed their sponsors would see their efforts and be able to help them. Many people are aware of the huge success of companies like Yahoo!, Google! and Facebook. These websites are free, and people will flock to them. Entrepreneurs are mistaken to believe that just building technology and posting it on the internet will attract users. They do not realize that Google failed for years before becoming famous. Facebook was not well-known at Harvard University, where it was founded. It also took several pivots before it got the traction that it has. But it is only the tip of the iceberg.
Ninety percent (90%) of the work required to build a startup is not well known. It isn’t talked about in the media. You can only learn the true story of how they made a successful company by reading the autobiographies and memories years later. It is not the best product in the world that wins, but it is the most widely known product. You must spend most of your time as a startup founder and entrepreneur spreading the word about your ideas. Talk to the people that you are trying to reach, understand their needs and hopes, and dream. You should find out what they think of your solution before you address it.
Takeaway: This competitive world is not the best product that wins; it’s the best-known.
Myth #3 – You must raise money before you start.
This myth is responsible each year for the death of millions upon millions of unique business ideas. Young entrepreneurs are bursting with ideas that could be the next Amazon, Facebook, or TikTok chef. Many of them are looking for investors and making it their priority to implement their ideas. They aren’t willing to invest in their businesses or their personal growth. However, they have dreams of millions from high-tier venture capital firms.
It’s all about people. Startups will prosper if they can help people solve their problems. No matter whether you have investors. Good news: You can invest your time to start your business model. They are talking to other people and listening to others. You can refine it. They are iterating on it. When founders are consistent, their ideas will gradually become the spotlight. Manoj Aggarwal, a Strategic Advisory consultant, wanted to promote his services to Fortune 500 executives in 2017. However, he didn’t have enough resources to start an international consultancy company that could compete with these global giants. So he started a podcast using just $100. Today, he does business with some of the most prominent names on the planet.
The takeaway: You are the most critical investment in your startup. The second is your time in understanding your prospects.