How To Beat The Startup Failure Odds
The contrast is shocking, and once you see it, you can't unsee it.
50% of new businesses succeed, but 90% of startups fail.
Here's how you can skew the odds in your favor:
- Full Ownership > Crowded Cap Tables
Resist partnering with people just because they offer capital.
Full control gives you the freedom to grow smarter.
- Cash Flow > Valuations
It doesn’t matter how many digits are in your company’s valuation.
What matters is the bank account you have to weather market storms.
Focus on the latter.
- Money in Your Pocket > In Your Investors'
A smaller pie you fully own is more rewarding than a sliver of a large one.
Make your own pie.
- Sustainable Revenue > Vanity Metrics
Focus on income that keeps your business afloat over impressive numbers that don't pay the bills.
- Self-Funding > Cash Burning
Control your destiny by running your business on your own terms.
Not everyone can do it, but if it’s possible, it’s empowering.
- Established Markets > Shiny New Things
Trends come and go, don't chase the next one.
Instead, invest where the customers already are.
- Lean Team > Bulky Orgs
Prioritize revenue per team member over a large headcount.
A lean team is more productive and cost-effective.
If we all run our startups as traditional businesses, we might just see those failure rates plummet.
I know I am doing my part. Are you?