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How to Distinguish a Good Startup Project from a Bad One?

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How to Distinguish a Good Startup Project from a Bad One?

Have you ever wondered how you can distinguish a good startup from a bad one? Here are the ways of distinguishing a good startup project from a bad one.

General Features

The viability of a startup can be confirmed or denied by some performance indicators. If it’s a truly good project, it should have a clear idea and a development plan. A well-developed business model is essential. If the startup is based only on the dreams of its founder, it definitely won’t survive.

Through the Eyes of an Investor

In order to identify how good the project is, you should just “turn off” the team member mode for some time and look at the project with the eyes of a strict investor. What should you be focused on? If you want to invest money in a startup, the project should become a business, as it’s really important.

When a Good Project Becomes a Bad One

It may happen that the viability of a startup, which meets all needed parameters, shows worsened performance. How can you indicate that the project has gone the wrong course? There are some signs that can reveal problems:

  • “Survival mode” – when the first results and the team’s expectations before the launch of the project are different significantly. Therefore, the motivation of the team disappears and as a result, the team switches to survival mode. In order to save the situation, you need to have an honest conversation and discussion with the project manager;
  • Investor that influences badly” – the development of the project is the thing in which the investor is interested, surely he/she has some expectations concerning the amount of profit and terms. When those expectations influence the startup team greatly, that’s an alarm signal;
  • “Need for changes” – due to the external environment that has an impact on every company, companies must change in order not to fall into the ranks of outsiders. Rejecting the need for changes leads to nowhere;
  • Good communication between the management and the team – the lack of information is the first reason for panic. It’s really important for the startup team to always know what is going on “at the top” and how the decisions are made;
  • “Alarming conversations”a person, who is always dissatisfied with the results, exists in every team. This person always tries to convey his/her opinions to others. Such discussions should be redirected in a positive way to avoid a split in the team.

Of course, there are different aspects and pitfalls that are worth your attention. But if you are persistent with your ideas and ready to work hard, your project will be a success!

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