5 Reasons You Haven’t Started Your Startup Yet, and Why You Should Do It Anyway
“Me, a successful startup founder? I really can’t see that happening.”
Have you ever considered #startuplife but told yourself you weren’t cut out for it? We’ve heard all the reasons why people don’t pursue their startup dream. Below are some of the most common reasons you haven’t started your startup yet, and why you should do it anyway.
1. It’s easier to stay in my full-time job where I’ll have more security
It turns out our corporate jobs are less secure than we think. ABS data reveals that redundancies in Australia increased by 45% in the two years from 2017 to 2019. Although new jobs are being created, there are many more that no longer exist, or will no longer exist in the future. The Career Development Association of Australia (CDAA) has observed this rapid shift in the careers landscape and reported a sharp spike in people seeking counsel as to what to do next (1).
Even if your corporate job is reasonably secure, chances are you are not feeling flush with funds. Since the global financial crisis in 2008, ABS and RBA data paints a depressing picture of near-stagnant wages growth which barely outpaces the rate of inflation (2).
Then there is the question of how the company you’re with is actually performing – especially as it navigates its way through the global Coronavirus pandemic. Organisations need to act in their own best interests, which don’t necessarily align with yours. You may not know when restructuring is imminent or a move to downsize is afoot. When building your own startup, you know your financials intimately, you can craft a culture you’re proud of, and be truly in control of your performance and your future.
2. I need to find a developer to build my product before I can launch
Here at Startup Onramp we have been privileged to work with hundreds of startups around Australia and around the world. The ones that succeed are NOT the ones who build a product and wait for their customers to come. Too often, founders come to us having spent tens or even hundreds of thousands of dollars building a product that people don’t actually need. Successful startups are built around solving a real problem, and the only way to truly understand and validate these problems is to get out of the building and talk to your customers.
Alan McFadyen, founder of BitWinder and Startup Onramp alumnus, understood this lesson. He spent several months talking to project managers about their pain points before launching his startup, BitWinder, which uses artificial intelligence to more accurately forecast project costs and time, is now generating interest from companies worldwide because its product solves an important problem for them.
In our many years of mentoring startups, we’ve found that successful founders prioritise testing and validating their ideas. The importance of conducting meaningful customer interviews and research (and how to go about it) is a key element of Startup Onramp’s Founders Course.
If you’re not a technical founder, that doesn’t mean your startup dream is dead in the water. You can learn to work with developers in a cost-effective way to build an MVP that meets your customers’ needs without spending your life savings.
3. I’m not a twenty-something programmer… I am too old to be an entrepreneur
Some of Startup Onramp’s biggest success stories don’t fit the stereotype of what it takes to be a startup founder. Megan Avard is the founder of SurePact, a developer of innovative risk management software. Megan quit her senior position in project management to pursue her startup idea after completing the Startup Onramp program. She now has a team of seven people, has won multiple national awards, and been named Women in Technology’s Entrepreneur of the Year for 2019.
Megan had a deep understanding of the problem that needed to be solved, which was more important than having technical skills. Even though programming was central to the development of her startup idea, she was able to bring in those skills as the company began to take shape.
If you have a deep understanding of your industry and arm yourself with knowledge about the best way to start, you’ll have a much higher chance of success than tech skills alone can deliver.
4. Someone else has had the exact same idea as me
You don’t need to be the first to do something – just don’t be the 100th either! Dropbox was the 11th online file sharing tool. The idea wasn’t particularly special, they just did a really great job of executing it.
And if you don’t have an idea yet? Doing nothing will keep it that way. Ideas come from doing the groundwork, listening to advice and feedback from those who’ve been there before, and spending as much time as possible “marinating” in the problem space - exploring interesting problems with potential customers.
Check out our blog post on how to know if your startup idea is any good here.
5. I’ve got a family and responsibilities – what if it doesn’t work out?
Most startups fail because their founders make predictable and avoidable mistakes. If you know what they are in advance, you can avoid them and take a different path. Startup Onramp creates a safe environment for founders to explore their startup idea without quitting their day jobs first. As the idea is validated (or changed), founders gain the confidence to take the next step. By developing your skills, knowledge and networks, and validating the potential of your idea, participants in our programs learn to make smart decisions that maximise their chances of startup success.
Are you ready to start your startup journey and learn how to avoid common startup mistakes? Startup Onramp’s Founders Course has been designed for idea-stage startups to help them beat the odds and build a successful startup. Find out more here.
References:
1. David Taylor, Business Reporter ABC Online, 17 October, 2019.
2. McKell Institute analysis, “Why is job insecurity so prevalent in Australia” 2018.
