Starting a new business

Setting up a new enterprise demands tenacity, bravery, and a generous dose of daring optimism.

However, nurturing a startup demands a higher level of challenge compared to growing a business. This largely stems from the anticipated capability to scale and maintain robust double-digit growth month on month.

Yes, it’s a work of sheer intensity.

Despite persistent efforts, nearly 70% of startups won’t see their tenth anniversary. What elements contribute to these heightened failure rates and lead numerous individuals to forfeit their hopeful ideas and invested undertakings?

Factors to encounter, related to the business environment

Embarking on a new idea and creating a startup within a specific industry segment calls for wisdom in posing queries and understanding important industry statistics.

What is the failure rate of startups in your sector, your city, or your niche?

The importance of this examination lies in providing a perspective on survival odds. More importantly, it yields insight into whether your location and business environment are maximizing your company’s likelihood of success.

The industry failure rate is crucial as it presents an opportunity to evaluate economic, financial, social, and cultural data relevant to your niche and region. Is your startup properly positioned within the suitable community, city, or state? Are your customer outreach efforts striking a chord with the local and cultural demographic you’re serving?

One effective way of determining these essential factors is through the use of the SPA method, as previously discussed here.

Good questions to ask at the inception stage include:

  • Which cities are the best for startups?
  • Where would my products/services thrive the most?
  • Which sectors are friendly towards startups?
  • Which are the most lucrative industries?
  • What are investors presently eyeing for investment opportunities?
  • Where are the investors based?
  • If your startup operates in the technology field, what tech stacks and frameworks are currently favored for investment?

What would behavioral brain research tell us on the topic

ScienceDaily recently published an enlightening piece, inspired by meticulous research conducted by the notable team at Queen Mary University of London.

The crux of the study revolved around understanding the delicate relationship between the lures of reward and the necessary elbow grease needed to accomplish goals. The dedicated researchers identified two critical phases in the decision-making journey.

So, what do these two significant phases entail? Initially, individuals are propelled by the anticipated outcome – they keep their sights locked on the potential rewards. However, once they start embarking on their action plan, they turn their focus to the enormity of the goals at hand and the corresponding effort it demands.

But how can we harness the power of these observations and truly understand them?

The outcomes of this study are layered and can be interpreted from varied perspectives.

One interpretation posits that rewards should be fetching enough to warrant the day-to-day grind and the labour invested. For instance, when pioneering a new business venture, the propelling factors should transcend mere material gain. A compelling business mission should stir and sustain the founders’ drive to persist.

On another note, the study signifies that founders should meticulously curate a business blueprint, effectively visualizing the unveiling of their business concept, whilst foreseeing the forthcoming hurdles. A sound business plan embraces all aspects and variables, critically assesses potential tasks, and measures the effort required for implementation. Armed with a practical outlook of anticipated rewards and necessary resources, deciding on whether the time investment is worthwhile becomes more straightforward.

To transition your dreams to tangible reality, the research encourages keeping your eyes on the grand prize whilst adeptly steering routine tasks throughout the execution stage.


At its core, it all simplifies to mastering the art of managing expectations.

Visualizing our desired outcome is the initial step. Then comes priming our endeavor for success. Keeping relevant industry facts, geographical influences, and the compatibility of the area and state with our prospective venture in mind are key responsibilities for founders.

Lastly, being aware of how our brain operates can aid or hinder us. The enchantment of the final product must substantially overshadow the effort and time expended. A thorough grasp of the involved dynamics is pivotal for transforming our ideas into reality. Though conventional business plans might seem anachronistic, they do, and still can, play a vital role.

Keep your eye on a substantial reward. Consistently remind yourself of that reward and resist becoming overly absorbed in immediate tasks. This nugget of wisdom from behavioral scientists is fundamental to accomplishing your objectives.

Categories: blogstartups


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