Here is a reflection on why so many startups fail from being the one doing it and see people doing it.
As my startup studio venture went through several iterations, it raises the question of whether it is good enough to go. Some people may think there is never an answer to it, they can always get things right after testing then improving, but is it really like that?
No, you can never get things right if you are fundamentally wrong.
There is a checklist team that can go through to de-risk or at least fail smart. There may never be a perfect business to go, but there is a matrix of good enough. 97% of the startup will fail and there is a repetitive pattern(attached below) about why it fails, which is the lesson that a new business can learn from. However, it is surprising to see how many people just keen on what they already have, ignore all the red flags, and jump right into the production expecting they can be the hero of being the first one to jump out of the deadlock that tons of people already hit and fail.
Taking our product as an example, we found a product with a good value prop, but we can not figure out the business module or the motivation for the supply side to join, that’s right, we already hit 2 points why a startup fails. You are probably thinking oh well then just fix it, I guess you will be surprised to know that lots of people in it will refuse to fix it. They always think all problems can be fixed later. Sometimes it works! And that is what people also called fortune — — A good product may be bad business and some products just lack the flexibility to get transferred into a business, but some can. Tech innovators all went down that path, those that succeeded become Google, Facebook. There were so many failures that there are even analyzed patterns a startup can refer to! There is a way to tell whether a product is scalable or profitable. We are no longer in ignorance as the tech era enters a phase that it shifts from innovators to majority, a business can de-risk by leveraging the warnings from experts or innovators who already failed by going down the same route. But no, most startups won’t listen. They like referring to the rare successful cases like Google, Facebook, and believe they will be the next giant without realizing the market saturation and evolving ecosystem. They do not realize following the mistakes those giants made will not make them another giant. You will be surprised to find how many people like committing to giant-had-made mistakes.