According to data from the U.S. Small Business Administration, about 20% of small businesses fail within the first year, and about 50% fail within the first five years. and according to a study by CB Insights, the failure rate for tech startups is around 90%.

• The startup, what do you look out for to succeed?

• Why do so few startups get external funding?

• How to improve the odds?

• How to be persistent even though I have not secured funding after trying for a long time?

Starting a business is a journey, and it's essential to be persistent and adaptable to increase the chances of success.

It's often said that the journey is more important than the destination, which can undoubtedly be true in the world of startups. At the same time, it's essential to have long-term goals and work towards also important to focus on the present and enjoy building, rebuilding, and to grow a business. Personal growth: Starting a business can be a learning experience, and the journey of building a startup can lead to personal growth and development.

Building relationships: The journey of starting a business can also be an opportunity to build relationships with employees, customers, and other stakeholders. Flexibility: Focusing on the journey rather than the endgame makes it easier to be flexible and adapt to changing circumstances. Enjoyment: Finally, it's important to find enjoyment and fulfillment in building a business, rather than solely focusing on the end result. Overall, it's essential to keep a balance and focus on the journey and the endgame to achieve success.

Starting a business from scratch can be a challenging but rewarding process. Here are a few steps you can take to turn your idea into a successful startup:

1. Please validate your idea: It's important to make sure that your idea is viable and has the potential to solve a real problem or meet a genuine need in the market. This may involve conducting market research and gathering feedback from potential customers.

2. Develop a business plan: A solid business plan is essential for any startup. It should outline your target market, marketing and sales strategies, financial projections, and any other key details about your business.

3. Secure funding: Depending on the scale of your startup, you may need to secure funding in order to get off the ground. This may involve seeking investment from venture capital firms, angel investors, or other sources.

4. Assemble a team: Building a strong team of talented and passionate individuals can be crucial to the success of your startup.

5. Launch and iterate: Once your startup is up and running, it's important to continuously iterate and improve based on customer feedback and market demand.

There are many reasons why startups may need help to secure external funding. Some common causes include:

1. Lack of a proven track record: Investors are more likely to fund a startup if it has a proven track record of success.

2. Lack of a unique value proposition: Investors want to see that a startup has a unique value proposition that sets it apart from competitors.

3. Lack of a clear business plan: A solid business plan is necessary to convince investors that a startup is a good investment.

4. Poor financials: Investors will want to see strong financials, including a healthy balance sheet and cash flow statement.

5. Competition for funding: There is often a lot of competition for funding, especially in popular industries or areas with a high concentration of startups.

6. Weak management team: Investors want to see that a startup has a strong management team with the necessary skills and experience to grow the business.

7. Lack of investor interest: There may be insufficient investor interest in the startup to secure funding.

How to improve the odds?

There are a few things that startups can do to improve their chances of securing funding:

1. Build a strong team: As mentioned, investors want to see that a startup has a strong management team with the necessary skills and experience.

2. Develop a unique value proposition: A unique value proposition sets a startup apart from competitors and can be a key factor in attracting investors.

3. Create a solid business plan: A well-written business plan is essential for convincing investors that a startup is a good investment.

4. Demonstrate traction: Investors are more likely to fund a startup that has already achieved some level of success, such as by acquiring customers or generating revenue.

5. Network and get introductions: Building relationships with potential investors and getting introductions through mutual contacts can improve a startup's chances of securing funding.

6. Consider alternative funding sources: Startups should also consider alternative funding sources, such as grants, accelerators, or crowdfunding platforms.

7. Be persistent: Securing funding can be a long and challenging process, and it may take multiple attempts before a startup is successful. It's important to be persistent and keep trying.

How to be persistent even though I haven't secured funding in a long time?

It can be not easy to stay motivated and persistent when a startup has been trying to secure funding for a long time without success. Here are a few tips for maintaining persistence:

1. Stay focused on your long-term goals: It's important to stay focused on the long-term vision for your startup and not get discouraged by short-term setbacks.

2. Seek feedback and reassess your approach: If you have been trying to secure funding for a long time without success, it may be helpful to seek feedback from potential investors and reassess your approach. This can help you identify areas for improvement and increase your chances of success.

3. Keep networking and building relationships: Networking and relationships with potential investors can help increase your chances of securing funding.

4. Consider alternative funding sources: There are many different funding sources available to startups, including grants, accelerators, and crowdfunding platforms. Consider considering these alternative options.

5. Stay resilient: Finally, it's important to stay resilient and not give up, even when the going gets tough. Many successful startups have faced numerous setbacks before eventually achieving success.

And statistically, how many startups get funding?

It is challenging to provide a precise statistic for the percentage of startups that can secure funding, as it can vary greatly depending on various factors such as industry, location, and the stage of the company. However, it is generally accepted that most startups still need external funding. According to data from the National Venture Capital Association, only about 1% of startups pitch to venture capital firms successfully secure funding. This figure does not include startups that seek funding from other sources such as angel investors, banks, or crowdfunding platforms.

I understand that it can be discouraging to hear that most startups still need external funding. However, it's important to remember that there are many different paths to success for startups, and external funding is just one of many potential sources of support. Many successful startups have been able to grow and thrive without external funding by bootstrapping or seeking alternative sources of funding. It's also worth noting that the process of seeking funding can be a valuable learning experience, even if it ultimately does not result in a successful funding round. I am the same; over time, some team members will leave, and even co-founders will opt to leave the team. New people that love the project will come in, don't get discouraged and keep moving forward.

Any other reasons that startups fail

There are many reasons why startups may fail. Some common reasons include:

1. Lack of a viable product or service: A startup's product or service must solve a real problem or meet a genuine need in order to be successful.

2. Poor market fit: Even if a startup has a great product, it may fail if there is not a sufficient demand for it in the market.

3. Need for more funding: As mentioned earlier, many startups need help to secure the funding they need to get off the ground and scale.

4. Lack of a solid business model: A startup needs to have a clear and viable plan for generating revenue and profits in order to be successful.

5. Ineffective marketing: A startup also needs to be able to effectively reach and communicate with its target market in order to be successful.

6. Competition: There is often intense competition in the startup world, and startups may need help to differentiate themselves and stand out from competitors.

7. Poor management: Finally, a startup's success or failure can often hinge on the leadership and management of the company. Management can lead to a lack of focus and direction, which can ultimately spell failure for the startup.

What happens if you're really persistent and still haven't made it yet

If a startup has been persistent and has yet to be successful, it may be helpful to take a step back and reassess the situation. Here are a few things to consider:

1. Is the product or service still relevant and meeting a genuine need in the market? If not, it may be necessary to pivot to a new direction.

2. Have the market conditions changed? It may be necessary to adapt to changing market conditions in order to be successful.

3. Is the business model still viable? It may be necessary to revisit the business model and make adjustments in order to make the startup more sustainable.

4. Are there other sources of funding or support that could be pursued? It may be worth considering alternative sources of funding or support, such as grants, accelerators, or crowdfunding platforms.

5. Is the management team still the right fit? It may be necessary to bring in new talent or make changes to the management team in order to bring fresh perspectives and ideas.

Ultimately, the key is to be flexible and open to change in order to increase the chances of success. It's important to remember that the path to success for a startup is often long and winding, and there will inevitably be setbacks and challenges along the way.

Being bootstrapped is difficult, but I believe in faith. And maximum effort.

Bootstrapping a startup can certainly be challenging, but it can also be a rewarding experience. By relying on internal resources and funding, startups can maintain control over their own destiny and not have to answer to outside investors. It's essential to have faith in your vision and to put in maximum effort to increase the chances of success. Some tips for bootstrapping a startup include:

1. Start small: It's often easier to get a small business and scale up as it grows.

2. Be frugal: It's important to be mindful of expenses and to only spend money on what is absolutely necessary.

3. Seek out free or low-cost resources: There are many free or low-cost resources available to startups, such as open source software, free marketing tools, and free or discounted services from vendors.

4. Consider alternative sources of funding: While traditional funding sources may not be an option, there are many alternative sources of funding that startups can consider, such as grants, accelerators, or crowdfunding platforms.

5. Leverage your network: Building relationships and leveraging your personal and professional network can help a startup get off the ground and find resources and support.

6. Stay focused and persistent: Finally, it's important to stay focused on your goals and to be persistent in the face of challenges.

Storytelling and startups?

Storytelling can be an important tool for startups in a number of ways. Here are a few ways that storytelling can benefit startups:

1. Communicating the vision: A compelling story can help a startup clearly and effectively communicate its vision and mission to stakeholders such as employees, customers, and investors.

2. Differentiating the brand: A strong brand story can help a startup stand out from competitors and establish its unique identity.

3. Building relationships: Storytelling can be an effective way to build relationships with customers and create a sense of emotional connection.

4. Persuading and convincing: A well-told story can be a powerful tool for persuading and convincing others, such as when seeking funding or partnerships.

5. Inspiring and motivating: Finally, storytelling can be a powerful way to inspire and motivate employees, customers, and other stakeholders.

Overall, storytelling can be a valuable tool for startups looking to communicate and connect with their audience effectively.

Next time, I will speak in detail about how I sold my first baby startup for USD300k, after failing other ventures times before. And how to make the perfect pitch deck to get more funding.

Thank you. I look forward to hearing your own insights and comments

Cheers,

Eric F

If you want to get in touch about interesting NFT ideas or projects or want to hear about a specific topic, I'm @ericclfung on Twitter.

Thanks to @gg & @Wacko & @CISBROS & @All-ETH for reviewing this post.

Disclaimer: I am just an NFT dreamer & builder who had some success in this crypto and NFT space. The above does not constitute an offer or solicitation to offer or recommend any investment product.

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