Having understood the struggle that a startup faces, Innovify has pointed out 6 most common mistakes that entrepreneurs can avoid making to ensure successful business and avoid startup failures. The two charts here show how a bad process might look in developing an idea into a product & eventually by avoiding the 6 mistakes cited out, the same chart goes onto showing what a good process looks like.
Being passionate about the idea is great but it can blind people into wanting to achieve perfection.
The wrong value proposition
It’s surprisingly common that startups don’t do enough research to back up the hypothesis around their idea. At times, they completely misunderstand the value proposition on which they build their product. In simple terms, they try to solve a problem which doesn’t exist or can easily be solved with alternative solutions.
So, startups need to focus on clarifying what value their product creates by asking themselves these basic questions which should then be tested, initially, by a survey of the target market audience:
- What is the problem?
- Whose problem is it?
- How big is the problem?
- What value are we creating?
- Who would benefit from this value?
- Who would pay for this value?
- How much would they pay?
Trying to be perfect
It’s a big mistake to wait to publicly launch the product once it’s perfect. For example, they spend (or waste) time and money building features which are the least important against the value proposition and delay the Go-To-Market date.
Those erring here totally miss the meaning of the Minimum Viable Product (MVP), which is – the minimum work you need to achieve maximum value. What goes into a MVP is defined by the Pareto Principle (aka the 80–20 rule) and the Kano Model (a product development theory classifying 5 customer preferences):
- 80 per cent of the value is created by 20 per cent of the effort
- And it takes the remaining 80 per cent of the effort to capture the remaining 20 per cent of the user value
- Hence one should focus on the most important functionalities that will capture the 80 per cent of the user/customer value
So, don’t wait until its perfect, once you’ve got your MVP, get it out there fast!
The wrong team
Team is EVERYTHING. Some of the most common mistakes that block creating a motivated team aligned to business growth have been cited out by us.
To know how you can avoid wasting time and focus trying to get all the skills in-house rather than using committed partners like Innovify to deliver the initial requirements, allowing owners to focus on the business side & the 3 other mistakes that pull startups down, read here.
Image Courtesy: http://www.mindtheproduct.com/2015/06/a-product-managers-hierarchy-of-needs