The Invisible Trap That Kills 35% of Startups

Author

Ashish Kumar
January 18, 2025 • Estimated Reading Time: 4 minutes

Good morning and happy Saturday, everyone! 🌞

Yesterday wasn’t a great day for me.

It taught me a big lesson about how important emotional strength is in life.

I won’t lie—I broke down over a certain matter.

But, thankfully, my mentor stepped in and helped me recover.

I owe a big thanks to him for helping me bounce back. 🙏

Today’s a new day, and I’m ready to dive into fresh learnings with renewed energy—and, of course, a sip of coffee ☕. Let’s get started!

1% BETTER MORNING

The Invisible Trap That Kills 35% of Startups

Imagine this: You pour your heart, soul, and savings into building a product you believe will change the world. Launch day arrives, but instead of applause and sales, you’re met with silence. Why? Because no one actually needs what you’ve built.

It sounds harsh, but over 35% of startups fail because they fall into this invisible trap: building something without validating market demand.

It’s easy to fall in love with an idea. You see the potential, feel the excitement, and think, “This is going to be huge!” But as time passes and reality sets in, the cracks appear. Founders often focus too much on building and not enough on validating.

Market validation is the safety net that stops this from happening. It’s the process of ensuring there’s demand for your product before investing heavily in development. Without it, you’re navigating blindfolded.

It’s not just about asking friends if they’d use your product. Validation involves:

  • Identifying a real problem: Does this problem actually exist for a sizable audience?

  • Understanding current solutions: Are people already solving this problem with other products or workarounds?

  • Proving willingness to pay: Do potential customers value your solution enough to spend money on it?

Example: Zappos founder Nick Swinmurn didn’t start with a massive inventory of shoes. Instead, he validated demand by reselling shoes from local stores. He posted photos online, waited for orders, and then purchased the shoes to ship to customers. This scrappy approach proved there was a market for online shoe sales without significant upfront investment.

Action Points:

  1. List your target audience’s potential problems.

  2. Research existing solutions and their shortcomings.

  3. Interview 10-20 potential customers to confirm the problem and gauge willingness to pay.

  4. Start small—test your idea with minimal investment to gather data and insights.

WHAT I AM READING

How to Finish Everything You Start by Jan Yager

👉Today’s Takeaway: Let’s be real—opportunities are everywhere, but not all of them deserve your time or energy. Learning to say "no" isn’t just about turning things down; it’s about protecting your focus and prioritizing what truly matters to your business.

Every "yes" to a distraction is a "no" to something that could move your business forward. So, master the art of saying no—politely but firmly—and watch how much easier it becomes to say yes to your real goals.

YOUTUBE TREASURE

👉My Pick: How to Create Irresistible Hooks

FOUNDER’S FEED