We know that in general 95% startup fails within 5 years. So, have researched WHY this happens?
Most of the time founders not research in-depth on their idea and many more parameters are responsible for the failure.
While reading “Zero to One” book, I read why most cleantech companies crashed, because they neglected one or more of the seven questions that every business/startup must answer:
Can you create a breakthrough technology instead of incremental improvements?
So, while starting your startup, your idea should be unique or it should be the 10X improvement in the existing solution.
Don’t try to copy others’ ideas and adding one or two extra features to it doesn’t make any sense.
So, instead of trying to improve the existing solution, try to find your unique idea and it will help you to differentiate yourself from others and create a monopoly.
2. The Timing Question
Is now the right time to start your particular business?
If you want to start an online business then you can start it now because due to the COVID situation everyone is in their home and everyone is on the phone.
So this could help you to get more customers and sales. So, to analyze that your startup/business needs the right time to start and if YES then find that right time.
3. The Monopoly Question
Are you starting with a big share of a small market?
If your startup is already in the competition then you might face problems in long run.
Monopoly is the perfect example to make your business profitable.
Monopolies drive progress because the promise of years or even decades of monopoly profits provides a powerful incentive to innovate.
So this is the main factor of your startup.
4. The people question
Do you have the right team?
The team plays a major role in the startup or any business. You should need the right team who has great potential, skills, and the main thing is that your team should be passionate about their role/work.
5. The distribution question
Do you have a way to not just create but deliver your product?
If you have a good product then you should also have distribution knowledge about your product or service. Think about how you are delivering your product in the market?
You should have a good plan and marketing team for this.
6. The durability question
Will your market position be defensible 10 and 20 years into the future?
The main thing about the startup is that your product should more unique so that it will help you to sustain itself in the market after 10 and 20 years into the future.
Because ultimately either your product is good but if you are unable to hold your position in the market then there is no meaning. So you also need to see the future trend before starting actual execution.
7. The secret question
Have you identified a unique opportunity that others don’t see?
Your startup idea should have at least 2 to 3 unique features, functionality that others not providing, and these things will differentiate your product from others.
I hope you like this article. These things I read from the “Zero to One” book by Peter Thiel.
If you like to read this book then you can buy this book from the below link.