The Internet is rife with stories of overnight startup successes or articles about university drop-outs, who launched and built unicorn startups without any money or experience. While of course, there are some few real success cases, the reality is that you really need to take most of the stories on the Internet with a pinch of criticism and rational thinking.
They create certain beliefs in the market about startups that we, as a venture-building company, really need to illustrate. There is no way around it - launching a startup requires hard work, determination, and a willingness to take on challenges that are often greater than those faced by traditional businesses.
Let’s take a deep look at some of the most common myths about startups in the market:
Myth #1. You can launch a startup with 0 money
You will need to spend money on launching your startup and the truth is that if you make some mistakes at the beginning you might end up spending two or even three times more of your “most expensive, yet highly impossible” budget. Recent research from GoodFirms shows that the average price of a simple app is between $38,000 to $91,000.
On the bright side, this price largely depends on your workforce and you can save a whopping amount of money hiring developers from cheaper places, like Poland. On the dark side, the location of your developers is not the only cost factor.
Some programming mistakes can cost founders tons and tons of money. Wrongly chosen programming languages, for example, can drive costs to unprecedented levels.
The harsh reality is that if you are not a programmer yourself, who can build an app by yourself and you don’t have an investor it will be impossible to build an app with “the money you saved from not buying a takeaway coffee”.
Be honest with yourself - do you believe in your application idea to such an extent that you are willing to spend lots of money that you might never see again?
Myth #2. A great product will sell itself
Most startup founders focus obsessively on the product and its features, completely ignoring the growth strategy. It is, however, a huge mistake. The reality is that it is very unlikely that someone will use your application unless you put a lot of effort into marketing and sales.
How many friends and family members do you have? We’d bet it’s below 100.
If you actually have 100 friends and family members, we have some good and bad news for you.
Good news: you will probably have a few first users in a matter of days.
Bad news: if you don’t have any idea or cash to promote your app further you are very likely to get stuck with this number for a while.
In the modern world, it is extremely hard to promote products without a well-crafted growth strategy. Digital products are not an exception.
Before you even start building your startup, think about how you will promote it and how much money you will need to allocate for it.
Myth #3. You can work full-time, enjoy a work-life balance and still build a unicorn startup
Are you comfortable with the idea of working during the weekends? Are you okay with sometimes sacrificing your holidays, get-togethers with friends or Netflix nights?
It doesn’t mean you will immediately give up all your hobbies, eat once a day to save time and sleep at your working desk. It just means that sometimes you will need to prioritise your work for other exciting activities.
Some people are drawn to startups like moths to a flame because they believe that they can build a business that will guarantee them a passive income for many years to come. There are multiple cases when someone built software or an app that was put out on the internet and sold to users many times without any active participation of a business owner. Such bright examples can be Minecraft or TikTok. However, nowadays in the increasingly competitive world, these situations are certainly pretty rare.
Someone can easily replicate your product and gain your part of the market, by putting more money into marketing and actively selling it to your potential customers.
Therefore, don’t be greedy with your time, your startup will need it as a plant needs water.
The idea that startups can be launched with no money is a common myth that needs to be dispelled. In fact, startups require a significant investment, and mistakes can lead to even more expenses down the road.
Similarly, the belief that a great product will sell itself is another fallacy that many founders fall victim to. Successful startups require a well-crafted growth strategy and a lot of effort put into marketing and sales.
Additionally, building a startup requires hard work, time, and sacrifices, such as giving up some hobbies or personal time. While startups are exciting and potentially profitable, they require the same ingredients for success as traditional businesses - money, time, hard work, a lot of marketing, and a bit of luck.
In addition, if you’re looking for support in order to launch your own startup, feel free to contact us at firstname.lastname@example.org.
Remember, with the right resources and guidance, launching a successful startup is always possible.