I thought I would make millions through my startup, but failed miserably. I read awe-inspiring stories of Flipkart and Zomato, but nobody told me that 90% startups fail within two years of their launch. I failed in the first year. Sometimes I feel cheated, but it was my fault that I failed to look beneath the glitter.
I built an ERP product for schools. We attracted some customers but could not scale up the operations.
My startup failed. But I refused to be defeated. The failure of my startup made me introspect on the shortcomings and I wish to share a few tips with you. Hope these takeaways from my failure help you avoid similar pitfalls.
Know your customer before building your product
The point should be clear by now. We built our product based on assumptions and the features of our competitors. We should have reached out to our prospective customers before building our product.
We should have convinced two or three schools of different standards to test our product. In exchange, we should have provided life-time free product and support for early adopter schools. We could have offered unlimited free SMS or something similar to save money.
Know where to spend money
We spent most of the money on office infrastructure and employee salaries. We could have avoided 80% of expenses by working from home and hiring employees on survival salary + ESOPs.