Squads

How to Avoid Startup Failure

How to Avoid Startup Failure

When you write about Startup Failure as Alain LeLoux did in his blogpost you are almost obliged to give some tips to avoid these failures as well. The insight into the sources of failure already provides some direction for finding possible measures to reduce failure risk. But, Alain also was so kind as to provide us with a list of Startup recommendations. We would be crazy not to share them with you.

How to Avoid Startup Failure

  1. Have fun! When you don’t have fun, stop immediately.
  2. Talk with (potential) customers: every day, day in, day out.
  3. Focus on launching customers (the first 3 or first 10,000). The earlier you involve potential customers in the R&D process the better.
  4. Rule-of-thumb: spend 1 euro on marketing for every euro you spend in R&D / developing your products/services.
  5. Try to set up a revenue model with recurring revenues.
  6. The lower the thresholds the easier to get new customers.
  7. Test your business plan with Business Model Testing (Customer Validation).
  8. People with commercial skills (proven past sales successes) in the management team is necessary.
  9. A formal launch with a press release can fasten-up the market entry.
  10. Listen to start-up veterans and experienced start-up coaches.