6 lessons that I learned from businesses that tanked.
Failure in business is not the end of the line. Learn from other’s mistakes as much as you learn from yours.
I started a business which tanked after a few years. The lessons I learned from my failed business are much more valuable than what I learned from anything else.
Failure is the biggest teacher if you are willing to learn. It teaches you some amazing lessons that even an MBA course cannot teach you. It gives you experience and build character.
Every failed business teaches us lessons and tells us stories of the mistakes that an entrepreneur must avoid. Check out these 6 businesses that failed big time but the lessons they carry are golden for any entrepreneur.
Yumist aimed to serve home-cooked meals to people. It is an untapped market in India and yet it failed.
Yumist’s business strategy had a high burn rate, requiring a large amount of money to achieve growth. Even with a funding of $3M, it wasn’t possible to sustain the business and it had to shut down.
Lesson: Even funding cannot save you if you do not have a solid business strategy in place.
Stayzilla was on its way to becoming one of the largest homestay networks in India. The startup was way ahead of its time when it began operations. Moreover, Stayzilla wasn’t able to provide better deals and discounts than its competitors due to insufficient funding which ultimately destroyed it.
Lesson: Even with the most unique business ideas, businesses fail. Networking and funding at the right time can help you scale up.
Roder was created to make intercity travel easier. One of Roder’s selling points was that it offered one-way trips at almost half the market price. However, it was not able to cope with the competition with more aggressively funded startups like Ola and Uber and ultimately failed.
Lesson: Pricing alone will not be a factor that determines the success of a business. Have a solid marketing plan in place.
Doodhwala was a subscription-based platform that delivered milk and groceries to consumers’ doorsteps. Doodhwala was forced to close due to a lack of funding and stiff competition from big names like BigBasket, Milkbasket, and SuprDaily.
Lesson: Every business has competition and it is getting fierce out there. Figure out your USP and aggressively promote it. Get funded or try crowdsourcing if money is a problem.
DoneByNone was web-based women’s fashion brand that managed to get $2M in seed funding. But the startup failed to handle the demand or deliver products on time and ultimately had to shut down.
Lesson: Always place quality over quantity. Deliver what is promised. Customer experience is important to sustain in today’s business world.
⇨ Yik Yak
Yik Yak was valued at $400 million at its best. This anonymous chat app was welcomed immensely by the youth, but then Snapchat entered the market and Yik Yak failed to adapt to the changing environment.
Lesson: Adapt to changing markets. Learn, grow and scale up. Be flexible
Every startup has good chances of failing. But keep in mind that fear will not help you succeed; instead, calm and progressive thinking will.
Successful people have faced setbacks and triumphed over all hurdles.
“Have a champion’s mindset. Put everything you’ve into it; any less & you’ll fail. Bounce back from the knocks!”