Learning from Failure: My Experience with 2 Startups & the Key Takeaways: #3 Neglecting value

Failure lessons go on. Last time we discussed the negative impact of financial instability and lack of focus. Another common mistake is that entrepreneurs over-emphasize product development and underemphasize value.

Sometimes perfectionism kills startups. In my previous two projects, it had a severe effect on the first and a slight on the second one. This tendency also hides a vital factor, value!

Before building a prototype and developing a minimum viable product, we should understand what customers truly need. In this post, we will discuss how heavy emphasis on product and neglecting value leads to the failure of startups.

Congratulations! As this blog follows the brevity principle(quality of being brief), you are at the second level!😊

That is important to mention here are undesired several consequences that come with this product oriented approach:

1. Lack of customer interest🫤
2. Negative reviews and reputation👎🏻
3. Poor retention rates 📉
4. Wasted time and energy🗑️

Don’t get me wrong, I do not think the software solutions should be less user friendly, even considering all unicorn companies below just started with those outdated designs.

However, today’s world is different. According to a survey conducted by Storyblok, 42% of users decide within 10 seconds whether to continue browsing a website or leave, while 20% make this decision within just 5 seconds. Additionally, the survey found that 6 in 10 consumers stated that they would not return to a website after the first visit if they found its design and layout to be poor.

Wow, you are at the third level. Let’s play a game!😉 I bet you will not read till the end. Make me wrong, if you can😂

Now let’s define in detail how those consequences affect overall startup performance:

• Lack of Customer interest: 🫤 So products should be user friendly in the sense of interface and experience. Whereas, in the initial terms main question should be, do customers need this product, sometimes entrepreneurs want to enter market ASAP for not losing time. However, they mostly lose more time and money without proper research.
• Negative reviews and reputation: 👎🏻 Let’s imagine product is launched and gains attention of early adopters. However, majority of them gives negative reviews and damages the startup’s reputation. This can make it difficult to attract new customers and investors and may ultimately lead to failure.
• Poor retention rates: 📉 Even if a startup has good design, without provision of ongoing value users will leave the application. Researching users is not only one time show, it has to be implemented continuously, to understand what they want how their desires change, for what they are ready to pay more, and what frustrates them?
• Wasted time and energy: 🗑️ The dialogue explains the situation. Clearly, we had something similar with one of the our mentors.

“As a team, we are highly motivated, and after quick market research we feel ready to build a product. What is wrong with that?

– Nothing, but probably you will not be able to finish in a meanwhile because you do not know what customers want, then you will need to change your requirements and code several times. Developers and designers will be tired of endless alterations. You lose your Time = Money, team lose motivation, energy and congrats you wasted your investment.”

In conclusion, we have highlighted the significance of validating ideas through market research. By understanding the needs and preferences of potential customers, startups can develop products that provide real value and increase the chances of success. In our upcoming discussion, we can delve into the specifics of conducting market research.

Thanks for being here! If you are reading this, I wish you a great day!🤗

Congratulations! You nailed it! I hope you find it useful. Take care!🌻