One of the hardest decision founders have to grapple with is "should I continue working on my startup or should I shut it down?" Time and time again, I suggest they go ask their market.
Whether you've invested months or years into a startup, there's likely a ton of doubt and self-esteem wrapped up in the company. What if this IS a good idea and you quit too soon? Would you be rich and successful if you had a little more grit?
And if you shut it down, what does that say about you? Does it mean you suck as an entrepreneur? That you are dumb because you launched something that the world doesn't want?
These are the questions that go through most founders' heads when they ponder this most drastic of all startup questions. I asked myself all of them and more when I shut down BuzzSite and when I walked away from Gnip and when we effectively shut down OneTrueFan.
So how the heck do you make a rational decision about killing your startup baby?
Simple: you go ask the market.
Spend two weeks reaching out to qualified prospects and ask them the three most important customer validation questions:
1) Do you have this problem?
2) What happens if you don't solve this problem in the next 12 months?
3) How have you previously tried to solve this problem?
SCENARIO ONE: You can't talk to any qualified prospects.
There either is no market here or you can't access them. Either way, that's not a great basis for a company. Move on.
SCENARIO TWO: They don't have this problem.
The number one killer of startups is solving problems that aren't problems. Time to move on. But since you have the prospect on the phone, maybe ask what they ARE struggling with?
SCENARIO THREE: Nothing happens if they don't solve this problem.
That's not a problem, that's an aggravation. In the business world, people don't generally pay to solve aggravations and frustrations. Move on. (If you sell to consumers, skip this one. Consumers are dumb.)
SCENARIO FOUR: They've never tried to to solve this problem.
Have they at least Googled for solutions? Anything at all? If not, they aren't actually motivated to fix the situation and that's a hard sell. Move on.
SCENARIO FIVE: They answer all three questions in the affirmative.
It sounds like a viable market! In your shoes, I'd spend time with some smart peers and mentors to figure out why your business isn't getting traction yet. But maybe don't give up just yet?
#founders #startups #decisions