2. Small Business Start-up
Locally owned Business
Small number of employees
No plans to become
corporation
Low Risk
Low Reward Businesses
Very seldom grow into
something bigger
Fine being small, stable and
profitable
Small but dream big
Motivation is money , popularity
and success
Dedication
Start-up wants to change the
world
Small Business vs Start-up
Comparison between small business and start-up
3. Start-up meaning
creating something new
and innovative
Small but dream big
Motivation is money , popularity and success
Dedication
Start-up wants to change the world
Search for a repeatable and scalable business model and ensuring the profit multiplies
What is Start-Up?
4. START-UP
Start-up is a temporary organization designed to search for a
repeatable and scalable business model
What is the value
proposition, products
and service offering,
distribution channel?
Who is the right partner?
Profit multiplies
5. STARTUP
New Market
― Cheaper
― Create new class of
customer
― Innovative/Never
existed before
Clone Market
― Local Adaptation
― Misjudge local
needs
― Customers known
Existing Market
― Known Users
― Better
― High End
Re-segmented
Market
― Niche
― Cheaper
― Low end
― Customer Needs -
Fit
Market segments for Start-up
6. Why Start-Up Failed?
• Failure to achieve Product/Market fit – Start-up failed because of developing products
or services that will not satisfy the market or meet user needs.
• Start-up fail to understand the customers needs or requirements and developing
products or services that will not help users’ issues.
• Lack of Focus – Majority of start-up focus too much on marketing rather and not
focusing on creating the right products or services.
• Being a one-person team – Unable to find the right members to join the team or
having the members not supporting in managing the start-up may be the reason or
failure.
• Pre-mature scaling – Scaling up too early without lack of preparation fails the start-up.
Example; scaling up before internal processes are established, the existing
technology cannot support expansion or funding may not be sufficient.
7. Failure to
achieve
Product/Market
fit
A founder gets an idea >> builds the solution >>tries to
sell it >> nobody buys the solution >> the founder runs
out of money >> the startup dies.
Talk to users as much as you can to move forward
No business was built on nice-to-have features. Solving customer biggest struggles,
challenges and frustrations.
Take 5 minutes to put your ideas on a business model canvas, and go test them don’t
spend months drawing them up
Solution : Customer Development
1
Techniques to avoid start-up failure
8. Lack of Focus
Recruiting a board of advisors >> Doing partnerships without proof
of extra revenue >> Spending time on PR and social media before
knowing you’ve got the right product for the right customer >>
Going to conferences
The only way to stay on track as a startup is to develop the product and talk to users.
Reduce time to get caught up in other things.
Solution : Focus on Users and Product
2
Techniques to avoid start-up failure
9. Being a One-
Person Team
Do not have the right team >> lack of support to fulfill
the objective >> lack of communication
Hiring the right people
Creating a good and open communication; top-down, bottom-up
Solution : Building the right team
3
Techniques to avoid start-up failure
10. Pre-mature
scaling
Assuming doing everything right >> Start scaling,
hiring, you’re funded, you’re growing.
Problem-solution fit : figuring out who your primary customer is, what problem they
want you to solve and how you’re going to monetize on this customer.
Product-market fit. The second phase is about creating an in-demand product that
services a large enough market for your startup to grow.
Channel fit. The third phase is about lowering acquisition costs and increasing
revenue so you can reach profit.
Solution : Scale up when you are ready
4
Techniques to avoid start-up failure
