Sunday, September 18, 2011

Recovering from startup failure and the lessons learned.

It's always nice when you do something, and it works but how do you face failure?
I recently failed with the last startup (bidsarena.com - is down), it was my first "me too" internet venture.
I learned a few things...

* "Me too" ventures have no entry barriers therefore there are many "me"s that will get in the game usually even faster than you.
* India is a significant competitor in the "me too" game and they copy any working model within days of its success, and they do it very fast.
* Do only what you believe in and feel comfortable with the morality of the business model if you don't, stop immediately.
* Do not hire newbies just because they're cheaper, they will drag you month's away from targeted launch.
* Do not work on it too much to make it "perfect", start it and improve on the way, it will never be perfect.
* Never forget that advertising is much trickier and expensive than you think.
* Never forget that you cannot always succeed.
* If your business is considered as high risk by credit card processors there's a reason for it.
* Make sure you can afford to fail otherwise keep your 9 to 5 job until it gets some traction and revenues.
* Always raise double the money you think you'll need and be truthful  about the chance to succeed to your investors.