One of the biggest reasons for the failure of 95% of early-stage startups is their team issue. If you have the right team, you can increase your odds of success by 25%.
As per the research of CB Insights, whenever a startup fails, 25% of the time is their team issue which is next to the lack of market demand and insufficient financial resources.
Welcome to First 500 days!
Today we will going to discuss the Issues that lead to Startup Failure and How to solve them. Come let’s start together.
Issues that lead to Startup Failure
Not having a balanced composition of the team
An ideal startup has hustlers, hackers, and hipsters. In simple words – leader, techy, and marketer. If someone is missing from your team, you should look for it and complete your team.
People are not comfortable and don’t have trust
If this is the case with your team, you should first work on it. Without trust, your team can’t survive.
The team is not competent
Starting up is easy, but building competencies and hiring talent is the most challenging to growing your company. If you can’t do this, you can’t grow, and eventually, you fail.
Team Management is not good
Every human is driven by greed and fear, because of which people fail at cooperation. Over time, build a good management team to look after your people.
How to solve them?
Over 60% of startup founders find it difficult to build a great team around them. What can you do?
Be clear with yourself
Your team should be your reflection. If you know yourself, you can predict what your team will be. Understand your nature, motivation, what kind of people you feel comfortable with, and how much closeness you like.
Be clear about other people
Every person is driven by greed and fear. They look for opportunities that satisfy their desire and make them happy and safe. There is nothing wrong with this. You must understand this and accept it.
Be clear with the internal game of the team
Everyone has their greed and fear, including you. Both greed and fear are acceptable in society. So people try to hide them and show them in some other way or communications. This makes the game ambiguous and makes relations and the team plays worse. Your job is to make this game less ambiguous.
Be specific about what are you looking for
Each person has different competencies and working styles. Each competency can bring your startup from one point to another, and each working style will affect your company’s working culture. Look for the best combination which brings you near your goal.
Accept people’s limitations and design your game accordingly
Each team member has a limited time duration with your company and adds value accordingly. People join and leave after some time. This process will go on. Make better judgment, play bets on people and grow your company. This is a game, enjoy it, lose or win doesn’t matter in the end.
Thanks for the read!