Startups grow very fast but they also fail very often. The majority of entrepreneurs think that they will create and build a really good product but only an idea cannot guarantee a successful project realization. Did you wonder how many startups fail? Unfortunately, according to Startup Genome Report Extra, 90% of startups fail. Startupers use to think they will not be one of the failures.
Below we will talk about common challenges for the novice entrepreneurs and how consulting for startups can help to avoid them.
Underwater rocks for startups
There are a few common challenges for entrepreneurs:
- Lack of budget. Startups need to secure the investment. Sometimes it’s not a matter of how good your idea is – without investments all businesses can fail. Thus, you need to make a working Proof of Concept (PoC) or at least a good strategy to present it to investors.
- Focus on creating a product without a focus on customers. The entrepreneur directs all his enthusiasm on the product building process and doesn’t check the feedback and think about end-users. This looks like the next stages:
- a founder has an idea and builds the solution;
- founder tries to sell a product;
- product is not bought;
- entrepreneur loses money;
- startup dies.
You should pay attention to the end-users requests and take account of their opinion. Also, you should find your target audience and pay attention to their feedback.
3. Scalability. Startups are growing fast. This is a concern for both the business and the team. Fast growth needs high scalability. Practically, you need to hire new people, expand the in-house team, equip new workplaces, rent a bigger office – it’s laborious and sometimes difficult to implement. What’s the solution? You might hire a remote team or an MSP. Thus, you will have qualified employees without expanding the in-house team.
What modern instruments exist to solve startups challenges?
Talking about IT startups we have mentioned Managed Service Providers, who can help you save your startup from failures. Usually, an MSP already has some ready solutions or can develop a new for your situation. How exactly can an MSP help your startup?
- Proof of Concept – MSP can help with PoC development. This is a working proof that the idea is good and profitable for investors. Lack of technical background can be a problem for the business owner but the provider could solve it.
- Minimum Viable Product (MVP) – this is the first version of your product with minimal functionality. The main goal of making the MVP is to show the product to the end-users and get feedback. Reviews help to upgrade the product to meet user requests. Also, MVP can secure more investments for your project.
- End-to-End Development. The third-party team can include developers, designers, managers, quality assurance specialists, etc. As a result, you will hire all the team which can provide a full cycle of development. It saves time and budget.
Conclusion: how to avoid the failure of a startup?
We discussed why startups fail, what percentage of startups fail and what can you do to develop your startup. Also, we talked about MSP which can help to solve some startup issues.
Startups are facing a limited budget and absence of implementation strategy. Even the perfect idea needs a technical background, thus entrepreneur always needs a well-experienced team. In this case, referring to the MSP might be a solution. You will receive experienced specialists without hiring them in-house.
Fortunately, nowadays work with remote teams is not a problem. MSP can provide you with the technical background you need. You can receive Proof of Concept for your future investors, MVP for your future users and, sometimes, an End-to-End development for product release and ongoing scaling. As a result, you will have a reliable implementation of your idea and support of experienced MSP.
If you want to succeed in building your own startup, you should pay a lot of attention in two moments – users and product. Actually, these are the most important aspects of your future business. Try to make the first product version as fast as you can and show it to your target audience. Thus, you will get the ability to change something in your strategy on the early stages. Remember that any idea can’t be successful without realization. Instead of endlessly improving the project in your mind, make MVP as quickly as possible and improve the product in real life.