No matter how many VCs and angel investors you attempt to attract with free lunches and burning pitch decks in business, if your startup’s core concept is terrible, you’re going to fail.
Surprisingly, no one wants to tell another entrepreneur that their concept stinks. And it is for this reason that you must make the ultimate decision.
Here is a list of things to watch for when it seems like things are heading in the wrong direction. These are based on my shortcomings and those whom I know.
1. No one is interested in what you’re offering
You don’t have to limit yourself to experts when getting feedback on your business idea. Friends, family members, and even strangers may offer important input that can either help you refine your concept or force you to ditch it entirely.
To determine whether or not people are interested in your concept, you should first and foremost inquire if they would be ready to pay for the products or services you want to provide through your business. If your mother is the only one interested in purchasing what you are offering, your business idea is not viable.
According to Mike Poller, CEO of Poller & Jordan Advertising in Miami, “every entrepreneur is passionate about their idea.” “Success, on the other hand, is measured in money, investors, and customers. Once you have made your proposition believable and people have committed money to it, you will know whether it is a good idea.”
2. You’re not excited by the idea
When it comes to your newest business venture, getting other people’s views may help decide whether or not to go with it. However, only one person can confidently tell you whether or not your idea is worth following through on, which is you.
As the person in charge of carrying a business idea through to completion, you are the most excellent judge of whether a venture is viable or if it is just not worth the effort. One approach to make that choice is to ask yourself a simple question: do you believe in your idea with all of your heart? If the answer is yes, proceed.
The founder and CEO of the worldwide marketing company Mavens & Moguls, Paige Arnof-Fenn, said in an email, “If you aren’t enthusiastic about what you’re doing, then why should anybody else be?” The competition in every area is intense, so if you don’t have a compelling tale to tell, as well as a unique method or idea that inspires you, don’t bother going any farther.
3. It takes too long for the Minimum Viable Product (MVP) to be developed
Tech is a complex area to work with. It seems that the tech bubble is about to burst, and the field is being controlled by a small number of corporations, such as Facebook, Alphabet, Apple, and others.
It didn’t take long for Facebook to develop a rival for Clubhouse, the popular voice-based social network gaining popularity.
It occurs all the time in the tech industry: Instagram cloned Snapchat’s stories, which were in turn copied by LinkedIn, and the cycle continues. Spotify and TikTok were able to defend against efforts to duplicate their functionality successfully. Clubhouse, on the other hand, is still up in the air.
By the time Facebook and Twitter began imitating Clubhouse, the new social network had already gathered a following of 10 million members, due in part to the efforts of several well-known early adopters. However, Clubhouse’s capacity to remain competitive today is dependent on how quickly it can innovate and add essential features to its product to retain and grow its user base.
It may be necessary to increase the size of the core development team to give the company concept more legs if your tech-startup idea takes too much time to get MVPs out or to iterate changes.
4. Someone tells you that your business idea stinks
The most reliable method to determine whether or not your business plan is a flop is for someone else to tell you that your business idea is a failure. Of course, not everyone you speak with will be equipped to provide you with that sort of constructive criticism.
Identify an expert or two in the area you’re interested in and ask them directly what they think of your plan. If you’re searching for an opposing view you can trust, consult with a friend who is also an expert in the field.
5. There is no genuine interest in the market in which you are involved
You will need to put in about 60 to 100 hours per week with little or no compensation to see your company take off for a few months or years to be a successful entrepreneur. You cannot work that hard and be that successful unless you believe in what you are doing and attempting to create.
Change the course of your startup to focus on addressing an issue that you are really and deeply passionate about. Often, it is an issue that is underserved or that no one has yet addressed that inspires people to establish their businesses that provide a solution to that problem. It is essential to be enthusiastic about what you are providing and the market you are in or trying to establish.
6. There is no demand for your service in the market
We’ve seen far too many instances of a founding team thinking that their innovation is so attractive and impressive that the market would beg them to sell their product.
Entrepreneurs are shown to be incorrect an excessive number of times. Suppose you do not clearly understand what your service can do in the market and do not grasp the psychological elements of your service’s prospective users. In that case, your company will probably be forced to pivot to a different market segment in which you have better knowledge.
7. Inability to finance company activities
The majority of startups experience this specific phase at some point on their path to financial sustainability.
During the first few months, entrepreneurs have complete control over every penny that goes out and every cent that comes in. When they are too busy to “micromanage,” they often delegate this control, resulting in a headache that results in a perfect storm of conditions.
Take ownership of your financial operations from the beginning, and don’t let it slip through your fingers again. A business with no cash reserves cannot function properly. It is likely to get stricter statements from investors and banks than it would receive if it were in a more favorable financial position.
It is vital to your founding team that the market does not see your company as a “dog” – in venture capital terminology, a “dog” is a startup that runs out of money before scaling up, leaving investors with no return on their initial investment.
Whether you want to find out if your business idea is a complete waste of time or if it is worth pursuing, ask yourself the following questions:
- What is the purpose of your establishment? (In other words, what is the goal of your company?)
- What is your attitude? (For example, what are the core values of your company?)
- What are you going to do? (For example, what is the primary purpose of your company?)
- What strategy will you use to be successful? (In other words, how can you distinguish yourself from the competition?)
- What is the essential thing to consider right now? (In other words, what are your top priorities?)
- Who is responsible for what? (For example, what role does each individual perform in your company?)
People’s business ideas are as diverse as their imagination, which is to say they are endless. Successful business ideas, on the other hand, must always accomplish the following:
- Meet a market demand or provide a solution to an issue.
- Be (relatively) simple to get funds for.
- Make an effort to be competitive.
- Execute your plan in a reasonable amount of time
- It should be something that the entrepreneur is enthusiastic about.
A company concept doesn’t need to be flawless for it to be successful. However, it must be primarily stable.
Make a choice, whether you want to pivot or not. Trust the information you’ve gathered up to this point, as well as market patterns, but make a choice. Pay attention to market feedback, hear what your customers have to say about your product and their impression of your business, as well as their experience working with you. Prepare to attempt it again before shutting doors or switching markets.