Fam Wencong, Kenneth

My Diary

Lessons Learnt From My Failed Startups

Published: Friday, January 17, 2020

You might be considering starting a business on your own. Go ahead but be warned! Nine out of ten startups will fail.

I tried to start a few online businesses but failed. They were internet-based websites selling JavaScript stock charts and recruitment services. Here are my lessons learned.

Cash is King

You need capital to run your business. The first startup I did was when I was an undergrad. I only had $200 per month to invest in it. It never took off; there was no money for marketing, staff and etc. You should find sources of capital first. Angel investor networks, government grants are some ways you can go about.

Market Need & Sales

You need to make sales to win. I was too consumed in developing in my first startup. Did not manage to make a single sale. The market for JavaScript stock charts was also too small. The market you are entering should be large enough to support profitability and even growth from your efforts.

I was selling most of the time and offering a free trial for my second startup. The response from consumers was better but I was running out of cash before I could make a single sale. I closed down.

Business Is Not For Everyone

Know when to cut your losses short. Business is not for everyone. You could be better off as an employed worker.