In previous posts I have eluded to the scary part about joining a startup company. Playing entrepreneur is one thing, jumping in head first and going all in is completely another. Knowing the failure rate of an early stage startup is something a person needs to understand before making this jump. Many cities have a challenge finding good talent in the startup world. Recently the CEO of Rivalry Jon Birdsong eloquently described the situation in Atlanta HERE. With the mix of tight funding, a talent crunch for tech and environment of the unknown makes for a serious uphill battle.
Understanding the risks is one part of the equation. Accepting accountability for the success or failure of your product or efforts is also part of the deal. What happens when you start hearing about the realities of your baby (product). Failing Fast is important and shifting the direction of your concept is vital to the survival of the company. Even if that means the demise of a role within the company. Typically, the person on the front lines gathering intel and feedback from customers is typically the person who can figure out the direction of the product the best. Most of the time this should be the CEO or Biz Dev person.
When your company feels it is ready to take the product to market, do so aggressively do not be passive. Get the product in the hands of everyone that will use it. There will be many opportunities for feedback either from what customers tell you or more importantly what they don’t tell you. The devil is always in the details. If you run into to many barriers of entry it may be time to go back to the drawing board. One major signal is a pricing objection. If you are getting in front of a bunch of people and never get a price objection, that is a strong signal that you need to pivot .
Let me elaborate, when you are consistently arriving at the price negotiation stage with your customers it means you may be on to something. If you are not getting here this means the customer does not see enough value in what you bring to the table or they have a similar solution that they do not see the value in changing from. Overcoming objections and learning from them is one thing. At some point, the product needs to sell itself. Keep in mind that potential customers are eager to get to the price stage if they want the product. It is typically the only stage in which they have control of the situation it is a very important stage that will tell you a lot.
Accepting accountability in any organization is a big part of personal and professional growth. With limited seed funding available, that may mean making some tough choices as development costs will take priority over everything else, as they should! If you do not fit in to developing a better product (technically) for the customer, this may mean you need to step away or your position will be eliminated. This is a reality, as it should be in any position in a startup or in the corporate world. For many people this is a tough pill to swallow. I have struggled with this portion for years. For me, if you are stagnating at a cube in a corporate environment and not adding any value collecting a pay check I would challenge you to step up.
This means many things for many people but you will know your boundaries, try to cross them. Ask a question in a meeting, take on that new challenge that you know you could do but don’t think you will be called upon. Do Something! If you fail, good for you. Learn, Grow and know that you tried to make a difference. You will be much better for it, trust me I fail a lot.
What else is involved with the fear of failure? What are some of the factors that are in play? How much risk is too much risk? How do you hedge the risks you take? I would love to hear from you.