Failed startup stories
A couple of weeks ago we published a startup idea analysis where we explained the necessity to create a website where users can share and discuss failed startup stories. We analyzed why this startup idea is good and worth realizing. We discussed somehow why founders should find and learn failed startup stories, and today let’s pay more attention to this given aspect.
Why to learn failed startup stories
Learning failed startup stories means that a founder(s):
- Tries to overcome survivorship bias.
- Expands the amount of information to examine, not limited to success stories.
- Knows possible mistakes in advance.
- Knows about similar startups and reasons for their failure.
- Knows what not to do to become a successful startup.
Let’s talk about each point separately.
Failed startups and survivorship bias
Survivorship bias is a logical mistake. It means that only successful cases are taken into consideration and unsuccessful cases are, in fact, eliminated from the field of view. Leading media publish many analytics about startup success stories. In startup conferences, mentor sessions participants discuss success stories mostly. Number of content dedicated to analysis of failed startup stories is low.
Indeed, learning success stories is great and makes sense because founders and owners can plan their product development in a more efficient way, understanding what competitors do.
However, we insist that learning failed startup stories is also a must – this lets founders understand what not to do to become successful, as well as what to do to fail.
Amount of information to examine
This is simple – the more information a founder has – the better the development of the idea will go. Information about failed startups in addition to successful startups is of great value.
Know possible mistakes in advance
Indeed, analyzing failed startup stories means that a founder can see and elaborate the mistakes that had led to failure. And, surely, avoid them.
Is it a new startup idea? – Know about similar startups and reasons for their failure
One more aspect is that a startup idea might be outdated. If a founder finds failed startup stories, he/she has a chance to see that someone tried to elaborate the same or similar business idea. If so, the founder has more data for further decisions: it is possible to:
- refuse developing this startup idea
- update the idea or even pivot
- start developing another startup idea
Know what not to do to become a successful startup
This aspect is somehow connected with all mentioned above. Understanding failed startup stories let founders understand:
- what to do to fail
- what not to do to fail
- what not to do not to fail
Final thoughts regarding failed startup stories
We hope we were able to explain the importance of learning failed startup stories together with successful ones. No matter what business idea you are going to realize, spend some time on research and try to find similar unsuccessful projects and their story. It is also a good idea to contact founders of a failed startup and ask some questions about what went wrong, what mistakes they made and so on. The more information you have – the more successful product development you carry out.
Code Inspiration team hopes this article was useful and wishes you to be successful in our projects!
We would also like to remind that we still offer a free of charge possibility to analyze your startup idea. We will carry out and publish a research similar to this for your given startup idea.