Why Startups Fail — Problem Solving
In my line of work in BlackStorm as a fixer, one of the most common reasons why startups fail, is when founders lack the ability to effectively address problems and resist seeking help.
The founder does not know how to solve the problems and yet is not willing to ask or pay for help. But instead spent precious time and resources finding the solutions on their own, this reluctance leads to poor decision-making, as they may rely solely on their previous employment experiences rather than validating their ideas through market research or customer feedback.
Without understanding real market needs, startups risk developing solutions that do not resonate with potential customers, which is a leading cause of failure.
Additionally, inadequate leadership and failure to adapt can exacerbate these issues, ultimately resulting in financial instability and business collapse too.
To effectively resolve issues, startups should consider hiring a consultant or a fixer. Here are key steps to follow:
1. Identify Needs
Clearly define the specific challenges your startup faces and the type of expertise required, such as marketing, legal, or operational support.
2. Evaluate Expertise
Assess the consultant’s background, relevant experience, and proven success in similar industries to ensure they can provide valuable insights.
3. Check References
Obtain references from past clients to gauge the consultant’s effectiveness and compatibility with your startup’s culture.
4. Budget Considerations
Ensure that the consultant’s fees align with your financial constraints while still promising substantial value for your investment.
5. Engage Your Team
Involve your in-house team in the consulting process to leverage their insights and foster collaboration.
Lastly, don’t be stubborn. Not everyone knows everything from day 1. We all need to learn and figure things out and it does not have to be an “all-in” or “all-out” type of situation.
Just like our parents pay for the tutors to help us on the weaker subjects. We in turn pay the professionals to teach our kids to swim, to speak better and to dance better. So why not get someone to fix our problems so that we can move onto the next stage?
