6 Signs Of A Startup That Seeks New Steer by Silicon India.com

#1 One piece works better than the whole.

The story of StyleZen boils down to the fact that at times the tools that are being used to power the business may be more powerful than the business itself.

"Once we figured the technology out, we had a very strong belief that it would be more valuable if leveraged across multiple brands as opposed to my one startup brand," Wohlschlaeger explains. "An internal tool turned out to be more valuable than the shell." Unique usership and engagement are the key points to pinch so as to sense the shifting perspective as per the StyleZen founders.   

#2 You misjudged your market

All startup founders believe that the customers are waiting for the companies solutions are services however in actuality they are least interested. Neal Hansch, San Francisco-based managing director of MEST Incubator reminds everyone not to be carried away and misjudge the market.

"It's not about having failed to get in front of potential users," Hansch says. "It's that the value proposition doesn't resonate enough with the target audience to generate sufficient interest for most to give it a try, much less become regular, repeat users. That means it's time to rethink the idea and assess how the core thesis was off-base.”

#3 You're missing industry standards

Understanding the industry's key sales cycles is important to assessing whether the startup is heading in the right direction as per Patrick FitzGerald, lecturer in the Goergen Entrepreneurial Management Program at the Wharton School of the University of Pennsylvania. A thorough understanding of the sales cycle is required; whether it is 6 months or four months or in a quick form of yes or no.

"If you're finding that you're not getting a yes or no within that industry time frame, that's a pretty good red flag that you're outside the norm in your industry," he says. "If it happens once or twice, fine. But if it's ongoing, you've got to realize it's a problem and consider whether a change needs to be made."
 

#4 The money's not there

It is appreciable that you work for the growth of your startup; however making worth out of it should always be the prime concern. Alex White was a student at Northwestern University, who co-founded Next Big Sound, a site where music lovers could create fantasy record labels to "sign" artists was surprised at his company not making profits even after shooting to fame.

"You have to be brutally honest about what's working and what's not," White says. "We were able to launch products successfully and build something we were proud of, but the business wasn't viable. You can't live in this entrepreneurial world if you can't make money."

#5 A competitor is doing it better

An industry rival, outperforming your company signals to the fact that something is not in the right place. It is time that you recheck the marketing strategies, pricing and features to get cutting edge over the competitors says Jacobson at Madrona Venture Group.

"Look at the metrics," he says. "If two apps launch at the same time, and one absolutely skyrockets because of virality, feature set, better marketing or whatever reason, you can see that difference in growth rates. If it's a winner-take-all type of market, then maybe that's a good indication you should go do something different."

#6 The thrill is gone

Every startup founder initially may have lot of inspiration and enthusiasm, but as time elapse the fire automatically dwindles and goes off. Next Big Sound’s founders noticed that they started drifting off from the purpose and goal.

"We didn't jump out of bed in the morning, and we didn't stay up all night working on it," Alex white says. "Entrepreneurship is so difficult; if it's not gripping you and exciting, that's probably a clear sign to switch, because it certainly doesn't get easier."