8 Startup Myths & the Truth / Reality behind them

“Stop believing the Myths, #1 Success = good Idea + Determination. #2 If you have a great Product, it’s a magnet, #3 Thorough Planning is needed [minimal planning & adjust as you go. #4 You need to hire $$$ people and #5 all you need is “Better, Faster, Cheaper” (over-simplified).”

Startup Myth Topics: Idea, If you build it, They will come, Business Plan, Need lots of $$$, being Boss, BiG Customers, Pricing, Rich ???

What’s not to love about Startup Mythology? A couple of friends have a great startup idea, grow it from humble beginnings in their garage to Unicorn status, and then sell for an enormous sum of money so they never have to work again. Heck yeah. Once in a million.

Info Overload or Loaded? There is so much information out there about startup success, it can be hard to know what is true and what is simply a trap. “But if it is on the internet, it has to be true, right? Wrong.

Chargify was founded by serial entrepreneurs who have track records of successful startups, so we’re in a unique position to drop some startup knowledge on you. In today’s Blog, we’re busting some of the common Startup Myths and telling you what you really need to know.

Myth #1: It’s all about the Idea (especially a great one)

Reality: You don’t have to have a completely new, innovative idea to succeed as a startup. Facebook wasn’t the first Social Media site & Google wasn’t the first Search Engine. It isn’t about being the first startup with the idea; it’s about doing it better and providing more value. “Better, Faster, Cheaper” Additionally, while a lot of emphasis is often put on the idea behind the startup, the idea is only a small part of it. The reality is that startups also need to go beyond the idea to evaluate Problem / Solution fit, find Product/Market fit, gather Feedback, and so many other things before an idea really takes flight.

Myth #2: If you build it, They will come.

You love your product idea and are convinced it’s so good you just need to build it and customers will flock to your startup.

Reality: It isn’t just a matter of building the product. Beyond building the product, startups need to spend time on marketing, sales, customer support, & building relationships with users/customers in order to be successful. Make sure you don’t fall under the mis-conception that more features equals a better product. That isn’t true. Especially when first starting out, you want to make sure your startup is clear on the purpose of your product and you stick to features that are “mission critical” to attain that purpose. “Do a few things really well rather than many things poorly”.

Myth #3: You need a detailed Business Plan

Reality: While it is true that you do need a business plan, don’t obsess over it. “Too many entrepreneurs spend months locked away, creating the “perfect” Business Plan with total scenario planning & detailed financial projections. These days, markets change so quickly, that you never really know how customers will react to your product or service, or what new technologies will emerge that may significantly change the business environment,” says IndieGoGo founder Slava Rubin. Startup founders who obsess over a detailed business plan prior to launch may also be paralyzed by a desire to make the product “perfect” before releasing it. You can start with an Executive Summary (as a Checklist) to assure you’ve considered all the important factor of Startup, Launch & beyond. [Wiz4.biz can help you there]

The process: Build >> Measure >> Improve >> Re-Build >> Measure >> OK?

If okay, Launch, If not, keep doing this cycle till product is !!!

If needed, bring in some Experts to review. [Wiz4.biz] Startups should focus on a Lean Startup mode with a Feedback loop.

Myth #4: You must raise a lot of $$$ up front

Reality: There are Boot-strapped startups that succeed without a bunch of early stage funding — Chargify is one of them. Others are Github, 37Signals, Campaign Monitor. Sure, you can not start a business without any money, but getting VC money up front may not be the solution. Get a Loan, ask family/friends, find a Partner willing to contribute, or look for some Seed money to get off the ground.

Myth #5: Founders get to be their own Boss & do their own thing!

Reality: There is a long list of people that founders have to listen, and often answer, to. The biggest being your Customers since paying customers are needed for your startup to succeed. In the early days, Founders wear many hats including CEO, CTO, CMO + +. If you think you can only do what interests you, you should reconsider your decision to start a startup.

Myth #6: You just need to land that one, huge Customer

Reality: First, it isn’t everyday a startup has the opportunity to land a potential giant Customer when starting out. But even if you do, a single customer (regardless of the size) should never dominate or determine the direction of your product. The time & resources that a company dedicates to making their product fit the large potential customer’s needs/wants ends up taking away from your existing or future customers.

Myth #7: You cant just Price yourselves < the competition & win

Reality: It should be clear by now that you can’t “just” do any one thing for the win — whether it is just having a great idea, just building the product, just hiring all developers at first, etc. Here are some of the problems with that:

Price Wars. What happens when a competitor starts selling for less? If your competitive advantage is a cheap price then you’re forced to further lower the sales price until you can’t afford to be in business.

Myth #8: You’re going to be Rich

Reality: You might, yes; and if you do, that will be awesome. But here’s the truth: if your motivation is money rather than solving a problem, you are setting yourself up for failure. Focus on a better way to solve a market’s problems. Be passionate. If you do this well, the money is simply a byproduct of your success.

Wrap-up. Startup success in general is far from a myth. But in order to achieve startup success, it is important that you understand the difference between startup myths and startup reality.

Comments: Do you know any other Startup Myths we need to de-bunk?

from Chargify.com 12/17 enhanced by Peter/CXO Wiz4.biz

For more Info, click on Starting a Business.