Email Marketing

Tips To Tackle Common Startup Problems

Published on November 10, 2024

Entrepreneurship: The Reality Behind the Glamour

Starting a business can look glamorous, with success stories of founders making millions or even billions. However, the reality is tough: about 90% of startups fail. This isn’t to discourage you, though! Unlike a lottery, you have control over your startup’s potential by making strategic choices. Here are seven key strategies to help you succeed and tackle common startup challenges.

Strategy #1: Bootstrap Instead of Seeking Funding

Venture capital-backed startups often dominate headlines, but there’s a growing trend of entrepreneurs building startups without outside investors, called “indie hackers.” Indie hackers focus on bootstrapping—funding their startups themselves to create sustainable, profitable businesses without investors. Many indie hackers work regular jobs while building their startups on the side, or they save up to work on their startup full-time.

For example, Pieter Levels, a successful indie hacker, earns over $350k per month with his startup. Indie hackers can face burnout and other challenges, so it’s wise to manage expectations and take it step-by-step. Bootstrapping is often the most sustainable way to start a business without the high risks of external funding.

Strategy #2: Focus on Proven Demand

It’s tempting to try to create the next big innovation, but a better approach for many entrepreneurs is to focus on improving existing solutions that people already need. For example, Nathan Barry launched ConvertKit, a specialized email marketing tool, at a time when other email tools existed. By focusing on bloggers, Barry differentiated his product, eventually expanding to all online creators, growing ConvertKit to over $42M in annual revenue. Find a need that already exists, narrow down your audience, and work to make the best solution for that group.

Strategy #3: Sell “Painkillers” Not “Vitamins”

A “painkiller” solves a clear, urgent problem, while a “vitamin” is a nice-to-have product. Apps solving specific problems tend to make money faster. Indie hacker Marc Louvion found more success with his “painkiller” tool for escape rooms than with a habit-tracking app because it directly addressed a business need. To succeed faster, focus on creating solutions that your target audience can’t do without.

Strategy #4: Validate by Charging for Your Product

Validating an idea by charging for it is the most reliable test of its potential. Dan Norris learned this after trying several approaches like building a pre-launch email list and offering free access—only to have his app Informly fail in the end. Success lies in people paying for and using your product. No other feedback can validate your idea as well as this.

Strategy #5: Build MVPs Quickly

An MVP (Minimum Viable Product) is a simple version of your product with only the essential features. Indie hackers launch MVPs quickly to test demand. For instance, Nico Jeannen saw a tweet about an app for enhancing old photos and created a working version, PhotoRestore, by the end of the day! The MVP brought in some revenue, even if it wasn’t a long-term success. Testing ideas quickly can improve your chances of finding a product that resonates.

Strategy #6: Get Your First Users Through Cold Outreach

Attracting users is challenging for new startups. Cold outreach—via calls, emails, or social media messages—can help you get initial customers. For example, Justin McGill used cold emails to grow his company LeadFuze to $30k in revenue within a year. Start with a personalized question, explain your product’s value, and end with a clear call to action.

Strategy #7: Build a Sales Funnel for Your Product

Sales funnels guide customers step-by-step toward purchasing. ClickFunnels, founded by Russell Brunson and Todd Dickerson, grew to over $100M in revenue in five years by using a funnel strategy called the “Value Ladder.” If you’ve validated your product, building a funnel can help you grow quickly by converting interested prospects into customers.

Learn How to Build Sales Funnels That Convert

ClickFunnels’ Russell Brunson, an expert in sales funnels, shares his strategies in his book, “DotCom Secrets.” This book is a comprehensive guide on building sales funnels that convert. You can find it on Amazon or get a free copy directly from ClickFunnels (you only cover shipping costs).

With these strategies, you’ll have a stronger foundation to build, test, and grow your startup. Starting a business is challenging, but by taking the right steps, you can improve your odds of success. Good luck!