Most first-time founders make the mistake of launching a product without fully understanding how to build and scale a high-growth startup. But it’s not as easy as it sounds to create one that thrives.
Starting a startup has become very cool, so everyone is jumping in to become a founder and making the mistake of launching a product without fully learning how.
According to research, 80% of startups fail in the USA, and the numbers are eye-watering, reaching up to 90% in countries like Canada. Only 10% to 20% of startups are able to survive in this brutal race, and only a few of them are profitable enough to self-sustain.
In this article, we will go through valuable lessons to help make your startup successful. From identifying market opportunities and building an effective team to scaling, these insights will help you get the most out of it.
No Copy-Paste Ideas
“Competition is for losers.” This is a great line from the book Zero to One by Peter Thiel, best known for founding PayPal.
When you copy an idea and try to build a product, you’re starting out behind businesses that are already ahead of you.
Finding the right product with little to no competition gives you an advantage. It doesn’t have to be completely unique, but it should be different enough so you don’t face direct competition.
Look at how far Elon Musk has come with Tesla by focusing on electric cars, how Mark Zuckerberg introduced the relationship status feature on Facebook, or how Steve Jobs launched mobile phones without keyboards. There are countless big and small companies doing similar things to find success.
MVP First
I can’t emphasize enough: build an MVP (Minimum Viable Product) fast and launch. Once you have the core idea, don’t wait for months or years to release the product.
Instead of launching with hundreds of features, focus on an MVP with the 10-15 most important ones. This approach will help you gather feedback quickly and allow you to launch finished products faster.
Overwhelm Your Customers with Value
Instead of launching products cheaper than your closest competitor, overwhelm your customers with more value. It’s not about adding more features, it’s about providing real value.
If you give your customers more value than the time and money they invest, they are going to fall in love with your product.
Compete with Yourself
While it’s not easy, Apple does this very cleverly. They keep improving their products, always comparing themselves to their past versions rather than focusing too much on competitors.
When your sole goal is to compete with yourself, distractions from other companies fade, allowing you to focus on continuously improving your product.
Take Elon Musk as an example. His main competition was traditional car companies, but he chose not to focus on them and instead kept improving.
Learn Fast, Implement Faster
Startups are called startups because they move quickly. While corporations take numerous meetings to approve a feature or fix, a startup has already launched five new features.
Learn what customers like about your product and double down on those features, while eliminating features that aren’t used much. This way, you can allocate your resources more effectively.
Automate from the Beginning
Anything that can be automated, automate it from the start. Don’t wait until you reach your first million to automate certain tasks.
Automate your cold emails, social media posting, chat support, invoicing, payments, and anything else you can think of. This way, you’ll establish a strong hiring culture and focus your team’s efforts on more impactful tasks.
Take Time to Hire
While it’s common practice in Silicon Valley to hire fast, fire faster; this can make your business inefficient and harm your company culture.
By quickly hiring and firing people, you not only make many suffer but also invest an immense amount of time and effort in identifying, hiring, training, and eventually letting them go. Additionally, the negative sentiment this creates on social media can hurt your reputation.
So, take your time to hire smart people. Instead of hiring 10 and firing 6 later, hire 2 of the most efficient people you can find, pay them more than average, and they will deliver more output than those 10 combined.
You can also hire freelancers to help with specific tasks for shorter periods.
Be Consumer-Centric
Make your team, and yourself, a consumer-centric team. In the early days, talk to your customers and ask about their experience with your product.
Assign your team members on rotation to do the same. The more customer-focused your employees are, the better the product they will create.
Start with One Product
Mobile companies like OnePlus and Nothing start with just one product to stay focused. They are competing with larger brands like Samsung, which releases hundreds of models, by launching just 1-2 models each year.
Apple is more valuable than Samsung for this very reason, as is Tesla compared to other car companies.
Once your first product is successful, you can diversify your offerings. Until then, focus on that one product and don’t dilute your resources.
Make a Business Plan
Not all startups will be funded by VCs, so it’s important to build a business plan as quickly as possible. Aim to get your first 100 paying customers as soon as you can, ideally even before you officially launch.
Build Brand
Focus on building brand awareness by leveraging social media. Use storytelling to connect with your audience and create a memorable brand identity.
Keep Your Focus on the North Star
Identify the North Star of your business and focus on that. Ignore all other metrics that might distract you from your main goal.
Stay Consistent and Motivated
Launching a startup is an overwhelming journey, a roller coaster ride with more downs than ups. But keep your chin up, stay motivated, and keep putting in the hours.
This consistency will help your team stay focused and motivated, leading to high growth.
Final Thoughts
Building a high-growth startup is a challenging yet rewarding journey. Focus on creating a unique product, learn quickly from customer feedback, and automate tasks from the beginning to save time. These steps help streamline your processes and allow you to allocate resources effectively.
The key is to stay consistent, motivated, and always prioritize delivering value to your customers. By following these principles, you can increase your chances of success and build a sustainable business that thrives in a competitive market. Keep pushing forward, and the results will follow.