Startup Failure – Findings from a Postmortem Report.
Why startup failed so often? Multiple obvious reasons:
- Founder feebleness
- Shortage of funds
- Wrong timing of getting the idea into market
Ok, are we done with the above. No, the list goes on but there's something which is acting like a big blocker. I'm talking about 'Focus' here.
Oprah Winfrey once quoted that 'Passion is energy. Feel the power that comes from focusing on what excites you.' Agreed. But, I think too many passions can make or break the deal for any entrepreneur running a startup. Instead of building and running one business idea, startups float around multiple ideas which results in loss of focus.
So is it bad to have multiple passions and trying things out around them. In business perspective and especially for Startups 'Yes it is Bad'. Alright, so what should be the ideal path for any startup in such cases. I think the approach laid down below works in my opinion.
Every entrepreneurial passion must hold a focus element in it, even when your initial idea has worked out. For example, if your passion lies in helping people staying organized with their professional lives, then you can get multiple ideas across this and weave them together to get a more matured approach towards the business you want to grow with. See how 37Signals has done with it (http://37signals.com/). Three different products, one single goal aka 'Passion' i.e. helping business people to stay organized and be more productive.
Another great example, Virgin Group Ltd.. The group founded by business tycoon Richard Branson offers multiple services around areas like travel, entertainment and lifestyle holding more than 400 companies worldwide. The passion is one i.e. giving a world class experience to customers of Virgin Group.
That said, multiple passions are good for personal life but in business 'things are different and more challenging'. After all being a startup you cannot afford to lose so much time and money without tasting the success and get some numbers for your investors.
So stay focused and build your business/ideas around your core passion.