Founders need confidence in their own abilities

Many people have (business) ideas, but very few actually implement them. And even fewer people found a startup for their ideas because the risks are too high for them. 90% of VC-backed startups fail. That is of course a valid reason. The statistics say that 90% of VC-backed startups in Silicon Valley fail. Since only a fraction of all startups find money from VC investors, the probability that a startup will survive is very small.

One possibility would be to bring your own idea into an existing (large) company, receive a salary and outsource the risks. The term “risk” must be understood as upside and downside potential, i.e. the opportunities are also externalized (perhaps except for a variable salary component): the profits from the innovation go to the company that also assumed the risks.

If you decide to pursue a business idea and intend to found a classic startup, you are confronted with major risks and uncertainties. Nobody can guarantee that the product will be accepted by the market, will reach a critical size or can be monetized. There is no guarantee that investors can be found who will use their money to make product development, market launch and growth possible.

A founder must have a high level of risk affinity. No matter how promising the business plans and market analyses look: there is practically no security at the beginning. There is only one certainty: the founder's rock-solid belief in himself and his idea. The only security that a founder has in the early stages is the unwavering belief in his idea and that he and his team are the right people to implement it at the right time. Otherwise it will probably not be possible to credibly convince investors to get through difficult times and really gain momentum.

My personal conclusion: I only pursue business ideas that completely convince me and that I can represent 100%, and do so with all my energy. But the greatest adventures are experienced outside your comfort zone, where there is no double safety net. Of course, sometimes it would be nice to have a little more security. But the greatest adventures are experienced outside your comfort zone, where there is no double safety net.

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Credits Picture: "Rainy Day Inspiration :: You Must Believe In Yourself!" by Jennifer, 2010. Creative Commons 2.0