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That's why it is important to first create a Minimum Viable Product or prototype. An MVP allows a startup to test the viability of its idea before building the actual product. You get feedback from the users to determine the features to add to the product. It is a realization that having nice-to-have features without confirming whether customers have the problem may not meet market needs.
It is important to attain a product/market fit from the early stage of the business. This is the level of being in a good market with a product that can satisfy that market, as defined by Marc Andreessen.
The second cause Graham mentioned is spending too much. In agreement, the level of burn rate can determine whether a startup succeeds or not. Being prudent may help startups to have better outcomes when deciding on hiring, customer acquisition, product launch, publicity push, and other activities that unnecessarily increase the rate of spending.
While it may not be wise to spend too little, you must avoid spending on things the business doesn’t need. It is possible to prevent other problems that can kill a startup just by avoiding these two mistakes.
Cheers,
Team StartupLagos
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