course 2 failure day supplementary reading
Post on 18-Oct-2014
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De-Pe
Failure Day
2
Failure Day
Overview of failure
• Succeed and failure are not mutually exclusive
• Often what seems like an overnight success, can be attributed – years of hard work– persistence– learning from mistakes and failures.
3
Failure Day
Failure in Chile
• Chilean culture harshly punishes failure in general.
• It is difficult to be an entrepreneur in a society that punishes failure.
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Failure Day
The Truth
• Most successful startups / people had failures at one time.
• Failure is important learning process. • The ability to accept failure is an
important characteristic of entrepreneurs.
5
Failure Day
How to Deal with Failure (1/3)
• Failure IS NOT FINAL– Failure isn’t permanent or a part of you– Look at mistakes, as outcomes or results,
NOT as permanent and personal
“People don’t Fail, it is the Plan, Strategies and Tactics that Fail.”
- Paul Mc.Kenna
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Failure Day
How to Deal with Failure (2/3)
• Take responsibility for failure and Learn a lesson from it– After a failure most people want to forget or hide
their failure in shame. – It’s even easier to just blame failure on someone.– Important to analyze and learn from your mistakes
even if its hard.
“I have not Failed, I have learnt 9,999 ways that won’t work.”- Thomas Edison
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Failure Day
How to Deal with Failure (3/3)
• Failure can lead to good things– Even after a failure many entrepreneurs find
that skill they learn + contacts or collaborators they worked with on their startup end up being a huge value in their next venture
Malcolm Forbes put it, "Failure is success if we learn from it."
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Failure Day
How to Guarantee Failure
• The worst way to fail is to not start!• The #1 problem people have is they just
don’t do it
1. Actually starting a startup is very different than learning about startups.
2. You can read about something 100 times but if you make a mistake with your own time and money involved there is NO WAY you will forget those lessons
3. Experience trumps book learning
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Failure Day
Why Startups Fail (1/3)
Startups fail from unproven assumptions. Josh Kopelman: “What’s the bet?”
• Identify key assumptions• Spend as little money as you can to prove
your assumptions• Go out side of the building to find your
answer
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Failure Day
MANDATORY Question
• List some of the major assumptions for your business idea.
• Hint: A big assumption most companies make is that people will care about / pay for their products!
Please answer this question at de-pe.com/faq/
11
Failure Day
Why Startups Fail (2/3)
• More startups fail from a lack of customers than from a failure of product development. – Nobody knows what the market really needs. – You have to push your product out in order to better listen
and learn from the market.– Start selling now! You do not need to have a company to
sell new ideas to customers.
This class focuses on using customer discovery process to create products that fit with the market.
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Failure Day
Why Startups Fail (3/3)
• Mike Maples: “You Have to Be Willing to Throw it all away”. – Investing a months of time in an idea, it’s
hard to let it go and move on to the next one.
– Better to push a minimal viable product out and validate your idea quickly – we’ll show you how to do this
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Failure Day
Failure leading to new businesses models
• Pivot is changing your business model (not just iterating on your product)– It’s the equivalent of taking a hit (no
product traction) and spinning (product pivot) to find another path to the goal (product market fit).
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Failure Day
Product pivot
• Stop fretting about your idea. – Flickr was a game. – Twittr was group SMS. – Youtube was a dating site.– Majority of companies end up with different
ideas than they started with!
• Build. Ship. Pivot. Repeat.
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Failure Day
Other types of pivots
• Vudu – distribution model pivot– Went from selling hardware boxes (only a
few thousand sold after $30m in investment to embedding their software int TV sets and DVD players)
• Ngmoco – pricing pivot– Went from selling $40 games on iPhone to
$2 games
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Failure Day
Pivot versus Iterate
• Red laser (Iterate)– Showed grandma how easy this new app and it turned
out it was completely foreign to her; she just had no idea how to use it!
– Still believe in product and market, iterate to make it better
• Invite Media (Pivot)– No traction with online video, hit a wall, switched to
advertising exchange– Grew to $100m valutation in 2 years after pivot
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Failure Day
MANDATORY Discussion
• Give an example of a company that pivoted.
Please answer this question at de-pe.com/faq/
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Failure Day
Questions?
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Failure Day
Thank You