Starting a business is often seen as the epitome of success and freedom. After all, who wouldn't want to be their own boss and create something from nothing? But, as we all know, risk is a part of the business world, and startups are no exception.
A bitter reality is that many startups fail in their infancy, leaving founders feeling disheartened and dejected. So, where do failed startup founders go from here? Do they quit? Contrary to popular belief, failure does not mean the end of a career in entrepreneurship.
In this guide, we will discuss how failed startup founders can regroup and continue to pursue their dreams.
Let's get started.
Where Do Failed Startup Founders Go?
Failure is a part of the startup journey, and it doesn't always mean the end of a business. It can actually be the beginning of something new. Most failed startup founders start doing jobs at different established companies. At the same time, some may start a new startup.
Working for a larger company can be a great way to hone their skills, learn from experienced professionals and take advantage of the resources that big companies have. But the best option for failed startup founders is to start a new startup.
Often, failed entrepreneurs will use the lessons they learned from their previous ventures to create something better and more successful. They will work on their weaknesses and focus on building a strong team, planning for risks, and setting realistic goals. And this ultimately will lead them to success.
What Happens To Founders Of Failed Startups?
It feels bad when a startup fails, but that doesn't define who you are. Most founders lose all the money they invested in startups and get bankrupt. But that doesn't mean they can't start all over again.
Failure is actually a great opportunity to learn and grow. Many successful entrepreneurs have fought their way back from a failed startup. As I mentioned above, most failed startup founders don't just quit; they often move on to something else.
These founders often become venture capitalists, mentor startups, and use their experience to help others. They also become public speakers, teaching others how to avoid the mistakes they made while starting their businesses.
I have even seen some working as consultants and product managers. Some try to improve their educational qualifications, and some become investors if they still got money in their banks,
So, there are a lot startup founders can do even after their startup fails. Just don't give up, even if you have experienced failure.
What Are The Biggest Mistakes Startup Founders Make?
You may be surprised to hear that nearly 90% of startups fail in their first year. Yes, you read that right. But did you ever think about why startups fail so often?
Well, there are a lot of reasons for that:
Running out of money:
The only thing startups struggle a lot with is money. Some startups are unable to raise money, while some don't manage it properly. This leads to them running out of money and ultimately failing.
Poor marketing strategy:
The success of a startup depends on its marketing strategy. Startups often fail to create an effective and efficient marketing plan, which can cause them to lose potential customers.
Poor team and hiring process:
A great team of passionate people is essential to the success of a startup. However, failed startup founders often make the mistake of not hiring great people or creating a strong team culture.
No market needs for the product:
Some startups fail because there is no need or demand for their product. They may have created something nobody wanted, which is a recipe for disaster.
Startups often get distracted by too many things and lose focus on their core goals. This leads them to waste time, energy, and resources and ultimately fail.
Although there are many more reasons for startup failure, but these are some of the most common ones.
Things To Do After A Failed Startup
Well, the most important thing to do after a failed startup is to get back up. No matter how hard it may seem, you must find the courage and will to start again.
Below are a few things that failed startup founders should do:
Take a break:
It's human nature to get overwhelmed after a failed startup. That's why it's important to take some time off and recharge yourself. Focus on your health and mental wellbeing and give yourself some time to process your emotions and then start planning your next move.
Analyze what went wrong:
It's essential to analyze and understand why your startup failed. Take time to evaluate your mistakes and identify what could have been done differently. This will help you avoid making those same mistakes in the future.
Improve your Network:
Networking is an essential part of success in the business world. Make sure you reach out to old contacts and build new ones that can help you in the future.
Ask yourself these three questions:
- Will my product be able to help others?
- Is my target market big enough?
- What will make my product stand out from competitors?
Answering these three questions will help you decide what to do next and how to use the experience of your failed startup to your advantage.
Make failure your strength:
The experience of a failed startup can be a great teacher. It will teach you to become stronger, more resilient, and more creative in the face of adversity. It will also show you how to persevere and never give up, no matter the challenges.
Go Ahead and start selling yourself:
Now that you have received a failed startup experience, it's time to use it to your advantage.
Start working on your startup and make it successful. Show your potential investors and employees that you have learned something from the experience of running a failed startup and become an even better entrepreneur.
The Bottom Line
No guts, no glory. You can make your failed startup experience the foundation of your success. Don't give up, and keep going!
Wrapping It Up
In a nutshell, failed startups are a part of the entrepreneurial journey, and they don't have to be seen as a failure. They teach entrepreneurs valuable lessons and provide them with the experience that will help them become successful in the future.
Use your failed startup experience to analyze what went wrong and to become a better entrepreneur. With the right attitude and perseverance, you can turn your failed startup into a success.
Frequently Asked Questions
Q: Do 90% of startups fail?
A: Yes, 90% of startups fail. However, this does not have to be the end of the world. Many successful entrepreneurs have failed multiple times before achieving success. Try to learn from your mistakes, and never give up!
Q: What do most startup founders struggle with?
A: Startup founders often struggle with a lack of resources, poor management, and financial constraints. Additionally, they may find it difficult to get customer traction and feedback and to find the right team.
Q: What are some things a failed startup founder should do?
A: A failed startup founder should learn to accept failure. Failure is what makes us stronger and more resilient. Take a break, analyze what went wrong, network, and make failure your strength.
Use your failed startup experience to become a better entrepreneur, and never give up on your dreams.