WHY STARTUP FAILURE?

Perhaps the phrase "startup" is not new in today's society, not just a trend, it is also the way in which the younger generation choose to present visions, dreams, and wishes to create change. Many young entrepreneurs have achieved success only from the business idea simple, practical for the social, human. But that is just the surface, when the entrepreneur were that they have at least few times failed, even someone bankrupt just to maintain the "brainchild". Part of that comes from not understanding the problem or too impatient for quick success that they sometimes have to pay dearly. 

  

Today, the number of entrepreneurs lot but look everywhere to see the startups fail. The reason is:

The allure from a good plan, a strategy of steadily, and market research throughout. Previously, these issues are “magnetic needle” for success. It was also intrigued by the application of this to startups. But it is not effective, because startups operate with a lot of uncertainties. Startups have not yet learned their customers are, their product should look like. The world is becoming increasingly uncertain, so predicting the future more and more difficult. The old management method was no longer appropriate. Planning and anticipating only accurate when based on a long history, balanced, in an environment that is fairly standard statistics. These startups are absolutely no elements.

Realizing the failure of traditional governance. Some entrepreneurs, investors had to surrender and accept the rules of the game to adapt to "Just do it!” of these startups. This rules nurture the belief that if the administrator is the issue, then chaos is the answer.

 

It can be seen, today's favorable environment to help the entrepreneur confidence create directions for themselves. However, opportunities are always accompanied by risks. Because in the marketplace, not available molds coherent governance, close to the radical risk investments. Despite the lack of this method, many entrepreneurs still manage to earn profit. This shows that besides success only count fingers are countless failures: the product was pulled from shelves on sale just a few weeks after launch, the startup company's reputation was praised in the press TV only to be forgotten in a few months, the last new product no one uses. It is worth mentioning is the harm to the economy occurs not only with individual employees, companies and investors, but also a waste giant to resources most precious civilization: time, passion , and human skills.

There will probably contrary to common sense to think that something breaks, progressive, chaotic as startups could be managed, or, more accurately, is to be managed. Most people think of "process" and "governance" as something staid, boring, while entrepreneurship is a hot issue, charismatic. But what is really encouraging to see the successful startup and change the world. Passion, energy, and vision that people bring to the new investment risk is the extremely valuable resource, not waste.

Source The Lean Startup 

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