The 20 Reasons Startups Fail
Build Your Startup Like a Serial Entrepreneur
Designing your business model
You must be able to convey the message of why you are the person that can pull off this vision and why now is the right time for this venture to exist.
Why are you and your team uniquely qualified to solve this problem and see this vision through? If you can answer this question, it really ties everything together and inspires people to get behind your team.
You or your team may have a unique insight to the problem that nobody else might have – perhaps a particular expertise or you have identified a problem that nobody else has seen because you worked in the industry or maybe you have a unique way of tackling the problem. It can also be more personal. Maybe you have experienced the problem firsthand and it affected you so profoundly that you decided that you were going to drop everything to go solve this.
Why are you the team to pursue this? What makes you a better bet than anyone else who could be solving this?
The second half of the story is why now? Why is now the perfect time for your startup to exist, and the perfect time for your startup to have the ability to thrive and succeed. This is a really important question because many believe that timing is everything in the world of startups. If you can nail this question, and give a compelling reason as to why now is the time for your startup to exist, it makes it so easy for people to get behind you and believe in what you're working on.
One of the best ways to answer this question is simply asking yourself: Why was five years ago too early? And why is five years from now going to be too late for your startup to exist?
A few common answers are around technology. Maybe there is an emerging technology that now makes your startup possible. Maybe there are new products or services that now exist in the world that have opened up a new opportunity for your company. Maybe industries have shifted in ways that have them thinking or acting differently, now creating a new opportunity for your venture.
One of our favorite examples of this is Airbnb. Many people believe Airbnb was so successful because in the financial crisis of 2008 many people were looking for new ways to make money without getting a second job or changing their career path. Airbnb allowed folks to monetize latent assets.
Nailing down the story of “why you, why now” will help people believe in you and your vision around why your business should exist.