Road to Ruin

Within the technology sector we regularly refer to businesses as start-ups. Its not always clear what qualifies a business to be included in this category but increasingly we think of them as the nirvana state for an organisation to be in.

We are often asked to think the way they think or approach a project in the way they would. To let go of our ingrained reluctance and to embrace a more can do attitude.

But does this not give rise to a paradox? If start-ups are the optimal state to be in then why do so many fail?

The Problem Business

Many start-ups are born out of a passion for a particular form of technology. Providing expertise in the application of that technology can provide a path to success, but its important to understand that the basis for a start-up should be the definition of a shared problem.

Successful start-ups define a problem that needs a solution, they don't create a solution and then attempt to find the problem it solves.

If the technology you provide is a well formed and reasoned answer to a well understood and common problem then the need for you to sell and persuade is greatly reduced.

Potential customers will recognise for themselves how you can help solve their problems, they won't need to be seduced to recognise the value of what you are offering.

Growing a start-up shouldn't have parallels with Jeopardy, because it runs the risk that you have engineered the answer to a question no-one was asking.

Baby Steps

A perceived virtue of a start-up mindset is to exist firmly in the hear and now, to not waste energy on what-ifs or potential future issues until they exist.

Its true that a healthy agile mindset promotes a realistic attitude towards not over thinking future requirements. Crystal balls are an unreliable technology and shouldn't be over used or unduly trusted.

While all of this is true too many start-ups do not anticipate the expansion that will be required as success grows. This is a difficult balancing act to follow, spend too long building for scale that never comes and you may miss a market opportunity in the here and now.

Another advantage of an agile approach is to try and break down large problems into small problems, and this should be the approach when looking at scale. If you currently have ten users then there is no need to start thinking about having tens of thousands, but you probably should start thinking about having hundreds.

You should have a plan for the next milestone on the horizon and not be caught out by the success of the thing you've worked so hard on.

Paying Dues

This will probably sound like an absurd thing to say but a failing for a lot of start-ups is trying to be profitable.

To qualify that statement, I am not advocating that start-ups should waste money or not be focused on having a plan to monetise the solutions they are offering.

But those should be longer term aims, in the short term start-ups should have courage and faith in the mantra they are preaching to potential customers.

In an attempt to recoup income during those early infant steps start-ups can sometimes come across as amateurish or lacking in conviction.

Nothing will do more to inspire confidence then forgoing income until your customer has realised some value from what you are offering, tie your success to theirs.

This absolutely has to be part of a longer term strategy to properly benefit from initial outlay and an equal number of start-ups fail precisely because they don't have a plan to make money.

This is about realising that a plan for success in a complicated industry has to be nuanced and be made up of many different stages.

There are many benefits to start-up culture and having that hopeful can do attitude that people associate with it. But it isn't a blueprint for success in and of itself, the reality of operating in a complex and competitive industry means that no particular philosophy can be guaranteed to bring riches.

Find a problem lacking an effective solution, take a pragmatic approach to its implementation and keep yours finger crossed.