Starting up is one of the most exilerating things a person can do in his career. Everyone considers that the idea is what makes a startup whereas everyone who has started up can tell you that it is indeed the execution which matters! Ideas are dime a dozen. A very famous person once said “Everyone has a plan until he is punched in the face.” This is true. What matters is whether the conviction to solve the problem still persists inspite of setbacks and whether the person is the one best equipped to solve them.
Stats of starting up are never in favour. Almost 90% of the startups fail within the first 5 years. It is therefore imperative that one takes a well-thought of decision in starting up. Majority of the times startups fail due to solving a problem which never existed. This might be because the problem was never big enough or hard hitting enough to begin with. However, this alone should not worry founders, remember people did have friends before facebook was founded, and connecting with friends online never seemed to be a hige problem to solve for.
The other major reason why startups fail is just because of the time they startup. They might either be 5 years too early or a couple years too late. The problem with startups who are ahead of their time is that they get resounding initial feedback with user who are early adopters and that leads them to believe that their product has genuine value in the market. When they later try to reach out to users beyond the early adopters their cost of customer acquisition keeps increasing instead of decreasing. This is a telling tale of startup being early and it might be due to a host of things, namely lack of internet penetration, slow computer processing speed, and lack of support infrastructure. Sequoia, a famous Venture capital company even has a Why Now? question in their pitch deck.
The third and the last major reason is improper team dynamics. Founders of companies often have different views on how the product should evolve, and this will lead to disagreements. However, if these disagreements spiral they then risk permanently straining the relation within founders which eventually leads to the companies demise.
Even after going through all these hardships, some startups stand tall and create immense value and generate employment opportunities for the millions who can then help them steer the ship in future.