I came across this infographic recently. It made me grin. As I’m a few years passed my own start-up failure, I can now chalk it up properly as lessons learned.
Looking at the list, the scary thing is that just about all apply to my experience. The only ones that don’t apply are passion/burn-out (although the final year 4 was tough), poor marketing, ignore customers, location, & legal issues. Everything else was a contributing factor. Now, that’s a heck of a lot of (expensive) mistakes to make. I was in control of most of them as well. So it’s not as if I can shift responsibility to others. The buck stopped with me. So what happened? At the end of the day, I just didn’t have the product-market fit piece understood, let alone nailed. The words of Marc Andreesen (founder of Netscape turned VC) sums up nicely what was (or wasn’t) going on:
“You can always feel when product/market fit isn’t happening. The customers aren’t quite getting value out of the product, word of mouth isn’t spreading, usage isn’t growing that fast, press reviews are kind of ‘blah’, the sales cycle takes too long, and lots of deals never close. And you can always feel product/market fit when it’s happening. The customers are buying the product just as fast as you can make it — or usage is growing just as fast as you can add more servers. Money from customers is piling up in your company checking account. You’re hiring sales and customer support staff as fast as you can. Reporters are calling because they’ve heard about your hot new thing and they want to talk to you about it. You start getting entrepreneur of the year awards from Harvard Business School. Investment bankers are staking out your house. You could eat free for a year at Buck’s.” – Marc Andreessen