editor’s note: This article was originally published on LinkedIn.
what are the main reasons for the failure of entrepreneurship Innovation workshop chairman and CEO Li Kaifu think:
1 doesn’t have a point: smart people will want to try a lot of new ideas, but in a resource limited startup, it’s obviously a luxury to try all the cool ideas.
2 is aspiring: entrepreneurship should be targeted to locate in the user needs — a market service, a group of users, there is also a striking function, can solve a real user demand. After getting a small group of users, you can expand to more users. Then you will find more user needs, and constantly upgrade their products. This is the way of lean entrepreneurship.
3 growth rate of entrepreneurs can not catch up with the expansion of the company: the creation of a three person company and the management of a hundred people is completely different. Rapid expansion of enterprises, or need to have an experienced entrepreneur, or need to be able to grow up quickly.
4 team trust problem: VCs generally like the kind of team members know each other for a long time. Lack of trust in the team, no matter how failed (how to streamline, what to cut) or success (how to divide the responsibility and the interests of money) will be challenged.
5 poor execution: in the lean entrepreneurial environment, a good start is often easy to copy. Therefore, you have to be reliable and quick to implement, for example, if you can not update the product every day, then at least need to update every week. Your leadership is maintained, not on the brand, not by intellectual property rights, but your sustainable execution, as well as the ability to lead the enterprise forward
6 provides technology, not provide solutions: and provide a mature technology, users are more willing to accept solutions. A good entrepreneur should realize that what really matters is not a cool technology, but a solution to the customer’s value. Venture capital favors companies that innovate in solutions rather than those that have not been tested (or entirely new).