The Totally Bizarre Reason that Startups Fail and How to Make Sure You Don’t
There is a totally bizarre reason why most startups fail or fail to reach their potential even if they have a great product
Although it’s not so bizarre when you recognise the same behaviour in yourself.
I work with leaders of startups that have sold for tens of millions and even hundreds of millions.
I’ve also worked with many leaders who were struggling to make their business work.
For sure the former often had people who had done it before and applied their experience but the second group are almost always filled with smart hard working people too.
Many of my clients from those successful businesses are often interviewed about why they were so successful and for the most part can’t quite put their finger on why.
And the reason is because the reason is so mundane and so obvious but at the same time intrinsic to human nature that it’s almost impossible to spot until you’ve spent a lot of time in both environments.
So what’s the difference?
Well something we know about ourselves is that we are feelings led.
We are drawn towards some actions and environments and away from others.
We know this about ourselves because we DON’T follow the perfect diets and health routines, we often put things off til the last minute, we avoid difficult conversations, we aren’t perfect parents or perfect partners or perfect at anything, I know I’m not.
Each and every time I have stepped into a start up that has yet to find its way what I see is this FEELING led dilemma on overdrive.
EXCITEMENT- has caused each person to launch yet another idea or product or add on.
INSECURITY- had caused a bunch of people to avoid doing the most important tasks like making sales.
FEAR - has caused people to look busy doing things that don’t need doing with great urgency.
FEAR of JUDGEMENT - has caused people to avoid responsibility and focus on what they know they are good at even if it doesn’t need doing or doing yet.
FEAR of FAILURE to meet expectations has people avoiding the most measurable work.
In short the business is not taking advantage of their greatest asset.
Other humans, who can help each other to spot their own bullshit and follow their cognitive biases.
The most successful startups started in this way:
They stood in a huddle over a table (or the online version of) and said,
What are we trying to achieve?
What exact steps need to be taken?
In what order?
Who owns what?
When will you have it done by?
What absolutely DOESN’T need doing, doing yet or is a shiny distraction that looks fun and easy?
REPEAT, REPEAT, REPEAT
this then became ingrained in the culture.
Has your business too feelings led?
Do meetings end without action plan and ownership?
Do you have lots of products and projects without making one really shine?
If yes, how much longer are you willing to travel in the wrong direction?
