Navigating the Journey of a Failed Startup: Lessons Learned
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Chapter 1: Introduction and Background
Last year, I embarked on a two-week project, posting daily on LinkedIn about the insights gained from my unsuccessful startup in 2021. This endeavor turned out to be remarkably successful, garnering over 35,000 views, 200 likes, and 100 comments. I'm sharing this series here to inspire others who might want to narrate their own stories on LinkedIn.
Eight months later, the impact of those posts is still felt, as people continue to reach out with questions. Here’s a glimpse into my journey.
Section 1.1: The Lawyer Search
Have you ever needed legal assistance outside of a corporate environment? I found myself in that situation and was hesitant to ask friends for recommendations. So, I turned to Google.
I discovered several local attorneys, reached out via phone and their websites, but to my surprise, none of the six lawyers I contacted responded. After a week of silence, I persisted. Eventually, I received an email from one lawyer inviting me to meet for a consultation at $550 an hour. I decided to go, and after an hour of discussion, I left having paid $625 and with a clearer understanding of my legal needs.
Section 1.2: An Unexpected Business Idea
During the COVID lockdown, a friend and I were brainstorming business concepts. One of his suggestions was an affiliate model for legal services. Initially, I was dismissive, feeling it lacked excitement compared to the fintech ideas I was passionate about.
However, reflecting on my own frustrating experience in finding a lawyer sparked an idea. I envisioned a platform where individuals could easily browse lawyers and schedule consultations online—similar to ZocDoc, but tailored for legal services. This concept intrigued me, and I reached out to my friend to discuss it further.
Chapter 2: Challenges of Distribution
In our pursuit of clients, we invested heavily in Google and Bing ads, only to feel as if we were being taken advantage of. Analyzing user interactions on our site revealed a troubling pattern; some visitors engaged, while others left in mere seconds, resulting in a frustrating cycle of wasted clicks.
Despite the challenges, our focus remained on conversion rates. We managed to convert visitors to appointments at a rate of 12%, but we needed to reach 17% just to break even. It was a daunting task, with fluctuating rates that constantly tested our patience.
Section 2.1: Lessons from Ad Performance
Through our trials, we learned that distribution is paramount. Even though customers appreciated our service, our financial losses painted a different picture. We were stuck in a cycle of uncertainty, and our inability to diversify our marketing efforts further exacerbated our struggles.
Chapter 3: What I Would Change
Reflecting on my startup journey, I recognize that while the highs were exhilarating, the lows brought feelings of isolation. Here are four changes I would implement if given another chance:
- Engage with Other Founders: Connecting with fellow entrepreneurs could have provided valuable insights into potential pitfalls.
- Recruit Advisors: Bringing on experienced advisors could have offered fresh perspectives on our strategy and operations.
- Consider Funding: While we aimed to operate independently, securing small investments could have validated our approach and revealed critical risks.
- Build in Public: Sharing our journey on LinkedIn might have fostered a supportive network that could help identify our blind spots.
Section 3.1: The Impact of Direct Outreach
The foundation of our startup was unexpectedly built on one effective cold email. This email, surprisingly lengthy, contained personal anecdotes that resonated with recipients.
By meticulously crafting our outreach strategy, we discovered that direct mail still holds value. Sending personalized gifts to potential lawyer partners resulted in a remarkable response rate, proving that unconventional methods can yield significant results.
Key Takeaway: Don’t shy away from exploring different channels and strategies; the outcomes may surprise you.
About the Author
I'm a business development executive in Washington, D.C., currently working at Caribou, a fintech firm backed by notable investors. My previous roles include executive positions at Credit Karma and management roles at Capital One and comScore. Connect with me on LinkedIn for more insights.