A friend of mine launched a startup right after he got his MBA from business school. And he failed miserably! He made the classic mistakes and stepped into the “Circle of Guaranteed Failure”.
Here is the whole backstory:
One of my friends struggled through university for four years. And when he graduated he was ready to command a huge enterprise business. So the very next day he launched his first startup right away, because he thought, hey. I know how this stuff works, right? And guess what? He failed miserably and lost a ton of money! Then he called me up and asked me for help because he knew, that I was good at brainstorming ideas. So we talked some about his business idea and it became apparent that he had made all the classic mistakes and stepped into the infamous cycle of guaranteed failure.
Now let me explain to you what exactly is the cycle of guaranteed failure:
The Cycle of Guaranteed Failure consists of 4 steps:
- You have an awesome idea
- You create a product
- You launch your product
- Then you realize that no one cares
Well, I am sure that something like this has happened to almost every one of us before. Well, the same thing happened to myself a few times already! That is just the way we were trained to think. So the real challenge for my friend here was to even realize that this might be a problem. He was still thinking like a big corporation and not like a startup. He thought when I create a product, people will come and buy this from me.
But that is not how it works.
The big companies can only pull this off because they spend a shitload of money on expensive advertising campaigns to tell you their rubbish is any good, when the reality is that no one even needs that stuff. Whereas in the world of online marketing, you completely need to change your perspective: You need to start thinking like a user and identify the constant pain points and problems of this user. Then go on and solve that problem. And if you manage that, then you will find that this is your best new product.
Well, O.K. back to the story again, so we brainstormed what he could do to make it work. And at the end, we had defined a major pain point in his industry and sketched out a business model that was sustainable from day one and had a clearly defined growth strategy for the next few years. And suddenly he realized that you really don´t need an MBA to launch a startup because this is the stuff that no one will ever teach you at business school!
What you need to understand
…is that you should stop creating products that no one wants and needs. Instead, focus on the pain points and problems in your niche and try to solve them. If you can deliver a solid solution to the right user group, then that will become your best product yet!