Recently, Fortune magazine ran an article featuring quotes from the founders of a variety of startup and new venture companies explaining why their company failed. The article states that statistically, 9 out of 10 all startups fail, and another source states that 75% of companies backed by Venture Capital fail. New businesses go out of business at an alarming rate and there is one common mistake that is to blame.
NO MARKET, NO MONEY
The most common mistake startup companies make is building a product or developing a service for which there is no market. It’s not enough to just have a great idea, you need to make sure the product or service you are creating has a specific market to which it will appeal and for which that market is willing to pay. You can have the money, the team, and the competitive edge, but if there is a lack of customers, you will quickly run into a lack of success because no one is buying your product.
KNOW YOUR MARKET, GROW YOUR MONEY
The LTU Collaboratory was founded to help students, entrepreneurs and early growth companies trying to get their project off the ground better understand how their ideas fit into the market. We help educate them and put their project through a test that determines whether or not it can be a success. Once we find out if there is a market for the project, then we can help them learn how to market. Our approach has one overriding objective, supported by two primary goals.
Make the client company profitable and sustainable.
Validate product market fit
Find a paying customer
After accomplishing these primary goals, the LTU Collaboratory continues to provide support services as needed to ensure that the client company reached profitability and sustainability.
GET SMARTER, GET FUNDED
The LTU Collaboratory, located on the campus of the Lawrence Technological University, is an MEDC recognized business accelerator sponsored by the Southfield SmartZone and its business. We are designed to specifically help startups and new ventures get the education they need to build a successful business, as well as find the funding they need to get started. Don’t make the mistake of jumping into a new venture without deeply understanding the audience you serve and how to serve them. With the LTU Collaboratory, we work with you to make sure that failure is not an option.
The learn more about the LTU Collaboratory, please contact: C2C@LTU.EDU
Don’t miss The Annual Collaboration for Entrepreneurship (ACE) event, January 26, 2016. The ACE event is the place where entrepreneurs from all over the Great Lakes region gather to network, learn and connect. http://ace-event.org/registration-2/