The hardest task in launching your first startup

Over the years we’ve worked with more than 50 startups and have had conversations with more than 500 founders.

Almost all of them are first time founders and the majority don’t come from a startup background, nor do they have product experience.

That’s not a bad thing, but it’s something to keep in mind as this article is directed at founders who match that profile.

The majority believe that the hardest part will be developing the product. That’s understandable, if you are a non-technical founder.

However, it’s rare that product development is the hardest thing.

If your product is high tech or essentially a research project (think self driving cars, a new form of generative artificial intelligence that can’t leverage existing foundation models, launching a rocket to Mars) then the hardest part probably will be product development.

There is massive risk there as there is no way of knowing if what you plan to build is even possible nor could you safely say how long it will take to develop.

At Launch Lab we’ve worked on some complex problems and large applications, but they almost never fall into the category of high tech or research projects. Reason being is that our early stage clientele simply don’t have the budget for us to work on projects that don't have a definite end point.

The type of startups we build are far less risky. Platforms like B2B Saas, 2-sided marketplaces and B2C products are our bread and butter. Unless they’re in highly regulated markets like health tech or fintech then the hardest part isn’t the technology.

That’s not to say they’re easy to build, but the risk is often low as they contain features that we’ve seen and worked on before (eg: features like message threads, subscriptions, user accounts, analytics, calendars, API integrations, scheduling features etc).

Thus, the hardest part for most startups we work with is user acquisition.

Disclaimer: there are lots of hard things when building a startup. If user acquisition is the hardest it doesn’t mean all other activities are easy. They’re just not as hard and have a lower risk.

Embrace the hardest task

In the majority of cases, in the embryonic phase of your startup business, you don’t need to get yourself too wrapped up in mastering SEO, SEM, social media, other digital ad platforms or repeatable distribution channels.

If you’re selling a B2B software solution then before a line of code is written you should know which companies you want to be your first customers. If you've worked in that industry you probably already know your future customers personally. You should be able to make early sales by reaching out directly to these people.

If you’re selling a B2C product then in most cases the methodology is the same. You’ll probably know people personally or through your network, or at least know communities, that have the problem your startup solves. Reach out to them first.

Being prepared

Based on that customer research you’ll hopefully have figured out who your ideal customer is. In fact, you should be able to sell to some of the people you interviewed.

Be prepared, and be sure to have a strategy to overcome your hardest task.

And remember, quoting from a Hollywood movie, “It's supposed to be hard. If it were easy, everyone would do it.”