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Startups Challange

Why are startups failing?


The biggest challange is coming from the brightness of a good plan, a solid strategy, and thorough market research. In past years before 2008, these things were indicators of likely success. The irresistible temptation is to apply them to startups too, but this doesn’t work, because startups operate with too much uncertainty. Startups do not yet know who their customer is, what they really need  or how their product should look like. As the world becomes more uncertain, it is more and more a gamble to predict the future. Consequently, The old management methods are not up to the task.

Classic strategic planning and forecasting methods are only accurate when based on a long, stable operating history and a relatively predictible environment. Startups have neither.


The second challange is that after seeing traditional management methods fail to solve this problem, some entrepreneurs and investors have gave up the „scientific approach of management” and structure and adopted the “Just Do it” school of startups. This school believes that if management is the problem, chaos is the answer. Unfortunately this doesn’t work either.


But recently an important countervailing force has emerged, one that can make the process of starting a company less risky. It’s a methodology called the “lean start-up,” and it favors experimentation over elaborate planning, customer feedback over intuition, and iterative design over traditional “big design up front” development.

 Lean startup principles

Lean Startup methodology is based on a few key simple principles and techniques:

Create a minimum viable product (MVP) which is feature-rich enough to allow you to market test it and launch with enough features to allow you to collect the maximum amount of data.

  • Use a continuous delivery model to release new features quickly with the least amount of friction.
  • A/B test different versions of the same feature on different user segments to identify which is more valuable.
  • Act on metrics – if you can’t measure it you can’t act on it to ensure that you are always improving the product.

You receive personal one-on-one coaching over a long enough period of time to see dramatic results.  We meet with you once a week or on a schedule that makes sense for you and work together hands-on, like a member of your team.  Between meetings, you take the next steps – to research, create, build, and validate.

This program helps your move from idea to a validated business concept.

We use the 9-element business model designed by Steve Blanks and others.

  1. Problem
  2. Solution
  3. Key Metrics
  4. Unique Value Proposition
  5. Unfair Advantage
  6. Channels
  7. Customer Segments
  8. Cost Structure
  9. Revenue Streams

You’ll create your initial business model, test it with customers to validate your raw idea, and iterate it as needed.

Want to learn how we can help your business? Let’s talk. We offer a free initial 30-minute telephone conversation for prospective clients to see if we’re a good fit. Or you can write us an email.

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