Among many lifestyle blog post ideas, in this post, we want to share some of the lessons learned from Startups and Shutdowns. We’ll explore what went wrong in these business failures, as well as what could have gone differently. As you read through the examples below, think about how your own business might be able to avoid similar mistakes.
The following are some lessons that were learned from Startups and Shutdowns: Lessons from When Businesses Fail:
- Don’t make assumptions
- Plan for the worst case scenario
- Keep a level head when it comes to money
- Start with the end in mind
- Don’t let culture get too big, too fast. Start small and grow organically
When it comes to your business, how might these lessons apply?
Write a few sentences about what you learned from this blog post:
I’ve always been told that assumptions are dangerous things but I think one of the biggest reasons Startups and Shutdowns happen is because people assume something will go according to plan without taking into account all possible outcomes or contingencies. It’s important for me as an entrepreneur not only to be prepared for potential problems but also have a back up plan just in case my original idea doesn’t work out the way I had hoped. In addition, money management was another key takeaway from Startups and Shutdowns.
If you spend too much or make risky investments, it can lead to the business shutting down in a worst case scenario. It’s important to have a realistic budget at all times and be aware of where my company stands financially both present day and long term. As I grow as an entrepreneur, these are two things that will help me keep moving forward with confidence!
Start out small
Start out small when deciding on your culture so that you don’t get ahead of yourself and create something toxic before it’s even had time to blossom into what it could become. Start by considering how your customers might react if they knew about the details of your startup story or new product idea; we’re talking about those little moments like when you’re in a meeting with an investor, or pitching your idea to potential investors. Start by considering what the first impression of your company will be and then work towards achieving that goal- but not too quickly! It’s important not to rush into things without having all of the necessary groundwork laid out beforehand. Startups and Shutdowns are never a good thing but there’s always something that we can learn from them.
Caddy Racks
CaddieRacks was founded by two brothers who grew up playing golf together looking for ways to make better use out of time spent waiting at caddies before rounds or between holes as well as improve course management during playtime. In January 2014 they launched what would become one of the most popular apps used on courses throughout North America.
Startups are risky by design but most don’t anticipate how quickly things could go wrong. AirMedia, an Australian WiFi network provider filed for bankruptcy in November 2017 after growth didn’t match company projections which led to bankruptcy proceedings on November 18th 2017.
The Art of Startups is a startup that started with no money while being an entrepreneur on a mission; they went from making $0 revenue their first year to earning over $500K annually through online classes and coaching programs before raising their seed round funding.
A business is like a person.
It needs to know when it’s time to stop, and make the best of what they have left. Just because your company isn’t succeeding doesn’t mean you should just close up shop find out how these entrepreneurs took their failures in stride:
Joe Perez founded Startup Slide (a site that publishes articles about startup successes) after he shut down his first venture, NowSourcing “I felt proud of myself for shutting down my failing start-up,” says Jenna Romain, founder of JR Home Solutions LLC Kevin Brown started Zombie Apocalypse Survival Kits with ambitions to create an international brand but ended up only selling kits locally and closing ShopZAPS this week due to a lack of funding.
What are the reasons that startups fail?
Some possible causes for startup failures include but aren’t limited to: market saturation, not enough customers, too low of a price point or because they didn’t have enough experience in their field. For some entrepreneurs, it simply comes down to needing more time to perfect what they had envisioned or needed before getting it off the ground. The most common reason cited is financial issues. And we know how important money can be when starting any kind of business! Hearing stories about successful founders who were able to pivot after shutting down (and even turning those experiences into lessons) helps illustrate just how valuable taking advantage of those teachable moments can be.
It’s a natural instinct to want to see your business succeed, but sometimes it may just not be in the cards! Start by talking with an advisor who has experience in entrepreneurship and figuring out if you’re at risk of failing or simply need some guidance on how to make things work better. It will feel easier knowing what steps might lead towards success and don’t forget that shutting down is always an option when necessary!
