Valuable lessons from a billionaire that he learned from his failure
Many of us are aware that 20% of new businesses collapse within the first year, and 50% within five years. But the bad idea is not the only reason for failure. Startups do fail on account of the bad timings as well.
Many of the startups commit similar mistakes when they begin their journey of entrepreneurship. The lessons from a billionaire who emerged as a successful entrepreneur after not just one, two, or even three failed startups but after trying his hand at 20 startups!
Many entrepreneurs give up when they see things not going in their favor. The following learnings will provide an inspiration to such entrepreneurs along with the points that they must be aware of while starting up or even during their journey.
Apoorv Mehta , the founder of Instacart is a perfect example of creating a fortune with perfect timings.
A sudden demand-surge was experienced by Instacart (a grocery app), in the pandemic.
April became their profitable month of operation, and it happened for the first time in nine years! The app’s valuation has gone up by over 124% in this year alone.
Two of his 20 failed pursuits were: a social networking app for lawyers and an advertising network for gaming companies.
He says “When I went home, I wouldn’t think about it because I didn’t care about lawyers,” he shared in a 2017 Los Angeles Times interview. – PASSION was something that was missing.
This is the first learning – taking up something that interests you.
His love for cooking and the inconvenience faced to get certain groceries got him the idea of Instacart.
Their tagline – “Groceries delivered in as little as 1 hour” also has something to teach.
People DO NOT WANT JUST A SERVICE. They intend to get their problems solved, pains relieved and benefits achieved.
Their tagline clearly conveys the solution to a problem – roaming around for grocery is a pain for the consumers and they do not wish to waste their time on that. Anything that would save their time would be a big YES for the consumers. While the groceries are being delivered to their homes, customers can do their other important tasks.
So the second learning is – delivering the value and not simply a service or a product and clearly communicating it to customers.
As smartphones became INCREASINGLY PREVALENT, consumers had become accustomed to app-based transactions. The Instacart founder was aware of it. He developed the prototype of Instacart within a month and himself delivered the first rounds of groceries to identify and fix any bugs.
So the third learning is the timing. Apart from “what you launch”, you should also look after “When you launch”.
Also know the detailed step-by-step process to test and validate your business idea here.
Few other things to take note of:
- Get feedback on your business idea from strangers and not your relatives or friends. The feedback that you get from your dear ones are usually biased and such biased feedback stops you from building something that solves the real problem or that which is really needed in the market.
- Always keep a watch for the market trends. The business environment keeps changing and if you can enter the market just when the opportunity arises, you can still make money without offering something original.
- Dig deep within to know the answer to why you want to solve the problem. If you are not motivated, you cannot go long. According to Mehta, “The reason to start a company is to bring a change that you strongly believe in to this world”.