30 reasons why your startup will fail
30 reasons why and how your startup will fail.
Does the prospect of failure make you uncomfortable?
Let me share this small nugget of information:
90% of Y Combinator startups fail.
That’s 90% of, arguably, one of the world’s strongest, most connected, most influential startup accelerators in the world. An organization that with all its might and collective wisdom would give the best chance of driving and influencing the outcomes of a startup.
Take away the Y Combinator, or any network of mentors and external help, and the chances diminish even further.
Are right to start feeling anxious about this? Probably.
Reading tweets from a lot of startup founders, I often see anxiety around whether a startup will fail or succeed. Especially whether a launch day on Product Hunt will result in favourable outcomes.
But you don’t want to fail. That’s not why you started this. So what to do?
Here’s an exercise that one of my mentors suggested that I do, many many years ago:
Write down 30 reasons why your startup is going to fail.
Use a pen and paper. Don't use a device.
Lined paper is great.
Here's what is important when doing this: make sure you write all 30. Do not stop at 5, do not stop at 10, do not stop at 20. Push for 30 reasons why your startup might fail.
By about reason number 12, you’ll start to run out of ideas. But keep pushing. Go deeper into the reasons why you might fail.
Why do this?
Writing down why your startup might fail, 30 times, can help with clarity because it forces you to think deeply about potential problems and challenges that could come up. By writing down these reasons multiple times, you are giving yourself the opportunity to explore different angles and perspectives. The exercise also helps you to process those issues and stop the cycle of feeling anxious about how things might go wrong and not having a mitigation plan.
The Sandcastle
Imagine you're building a sandcastle on the beach. Before you start building, it's important to think about what could go wrong. Maybe the waves could wash away your sandcastle, or the wind could blow it down. By considering and processing these possibilities first, you can come up with ways to prevent or overcome these potential issues.
Similarly, when starting a business, it's important to identify potential obstacles that could lead to failure. By writing them down multiple times, you are reinforcing your understanding of the risks and getting a clearer picture of what might go wrong.
This exercise helps you develop a better understanding of the potential weaknesses of your startup. It allows you to brainstorm solutions and strategies to mitigate those risks. It also helps you prepare mentally for the challenges you might face along the way.
It is important to approach this exercise with a positive mindset. By acknowledging the potential pitfalls, you are better equipped to address them and increase your chances of success. So, don't be discouraged by the exercise. Instead, use it as a tool to gain clarity and improve your startup's chances of thriving.
And also
Once you accept that failure is a possible outcome and you make peace with it. Only then can you free up your mental resources to direct 100% of it to asking “but what if everything goes right?”
Agree or disagree? Reply to my recent tweet to discuss: