FinTech startups begin with dreams of large-scale success on an international level. And advice is often given for ways to help them succeed. Perhaps just as important, however, is to consider advice that will ensure they fail. In that spirit, here are 5 ways to be sure a FinTech startup won’t succeed:
- Not looking for growth opportunities beyond the current market context – many FinTech startups set artificial boundaries for themselves, afraid to appeal to international markets and accelerators. Exploring these options can often lead to greater benefits.
- Failing to adapt to different market contexts – in the FinTech world, universal ideas that can be copy/pasted to a variety of contexts are almost non-existent. Markets in different countries are different, influenced by different laws, regulations and consumer needs. Just because something works in one place, doesn’t mean it will work in another.
- Not taking into account language issues – weak language training is perhaps the most common mistake among many FinTech startups that try to go international. For example, it is not enough to use Google Translate to translate a presentation. Subtext and nuance must also be appropriately translated for any FinTech startup wishing to demonstrate its international staying power.
- Not being flexible – just as different market contexts have different needs, so to do different investors have different elements they look at. It is important to be flexible and approach each potential investor uniquely, with a keen eye towards what he/she is looking for.
- Developing unnecessary solutions – creativity and originality are great, but innovation just for the sake of innovation rarely finds success. Focus on solving a specific business or consumer problem.