Why my first business failed. A lesson in what not to do.May 3rd, 2012 | Posted by in Startups
My first start-up business failed miserably.
It was 2007 and I was excited and full of enthusiasm. My new business was going to be awesome and it would change the world. It would create passive income and I’d be able to retire at 30.
At least that’s what I thought.
The business was called ‘txtme’ and it was a text messaging solution for the real estate industry. The concept was simple: home buyers could send a text message from outside a property and get property details back via text (like number of bedrooms, open home times etc).
Here’s what I did wrong (in no particular order)
- I paid an obscene amount for a domain name ($3500!! domain names are important but not that important).
- I locked myself away for the first month designing a logo and business cards (what a waste of time).
- I thought I needed to create some software from scratch, when in fact there were other solutions already available to me.
- It took me over 6 months to test the idea with a potential customer, something I could have done in the first week.
- By the time I talked to any potential customers I’d already invested way too much time and I was over-committed.
- I kept trying (way longer than I should have) because I thought starting a business was meant to be tough (it is, but I now realise when something is tough vs when something just doesn’t work).
But I wouldn’t change a thing.
The mistakes above are now etched into my brain and I couldn’t have absorbed them from a text book.
Interested in txtme? Let me know and I’ll happily give you everything I’ve put together for free including presentations, logo’s and industry contacts – you just need to convince me you are committed to giving it a decent crack.
What lessons have you learnt in your start-up business?