We all know the statistics about start-up failures.

Australian Bureau of Statistics cite that 60% of businesses cease within 3 years of commencing.

Up to 90% of businesses never make it to trade sale or IPO and are wound up.

And with statistics like this floating through our brains, it is a wonder anyone ever starts a business!

Humans however demonstrate a consistently high level of grit, believing their idea will make a difference.

Starting takes guts.

There are often time constraints and capital constraints and a whole lot of environmental factors that weigh into the equation.

So yes, starting takes guts.

These guts however shouldn’t be purely instinctive, they should be supported by research to support your idea.

A Fortune survey highlighted that 42% of business owners cited a lack of market as the reason their business folded.

starting needs guts and a market

That isn’t quite true – there is a market.

These businesses were missing a market who believed the product or service had relevance to them.

These businesses were missing hard data and conversations with actual audiences (not the echo chamber of your friends and family) that validated their idea.

These businesses were missing data that the market would PAY for their product or service.

Everyone loves a good idea.
Few people like to pay for it.

Would you pay for Facebook if it was a subscription service?
Would you pay for Instagram if there was a paywall to access Instagram Stories?

Making sure you have a market is often more important than the idea.

Making sure you have enough capital to deliver upon your promise is vital. In a world fuelled by instant gratification people don’t want to wait 3 years to finally experience what you promised them 1095 days ago.

Starting takes guts.

Make sure the guts are backed with the right nutrients.