With Purpose, Inc. (WPI) in partnership with E49 Corp are helping Mission-minded business owners or entrepreneurs build and grow their business and increase their social impact in the Sacramento Region through their Business Incubator program. Startups fail for many reasons. However, after conducting 101 startup postmortems, CB Insights noted that the following were seven most often cited reasons for failure:
- No market need (42%)
- Ran out of cash (29%)
- Not the right team (23%)
- Got out competed (19%)
- Pricing/cost issues (17%)
- Poor Product
- Need/lack of business model (17%)
Some of these, specifically the first one, should be addressed in the very earliest stages of a company’s lifecycle. In fact, our RAILS E49/WPI Business Incubator program focuses relentlessly on Problem/Solution fit and Product/Market fit because we believe that if you do not understand the problem you are solving and whether or not your market cares, you do not have a sustainable business. Once a company has Product/Market fit, however, the next six reasons for failure can rear their head. That is where our Business Incubator program‘s continually helps pick up the slack.
Our mentors understand where the landmines of failure are, and, not only that, are also active investors. For the right opportunity and marker, they will not only invest in a new entity, they will become active advisers. That active advisory can take any number of forms. We have had investors who are happy to sit on the board and provide consistent feedback. Others will take active roles up to, and including, taking an interim role on the management team to help move the company from Product/Market fit to Scale.
We also expect our participants to have “some skin in the game.” To that end, we expect that they will maintain their membership at Suite 210 in order to maintain the continuity of the program and their future business. As part of Suite 210 they will continue to receive both formal and informal coaching and will continue to have access to peers and E49/WPI on an as needed basis. WPI and E49 understand where the landmines of failure are, and we have designed our Business Incubator program to avoid them and aim for long-term success of its participants.