What I Would Do Differently: Lessons from a Startup That Closed
Reflections on a “Failed” Startup
It’s been almost two weeks since we closed Rêve Health. This was one of the hardest things I’ve ever had to do. Many founders don’t talk about the startups that fail, but I believe in learning from experience. I spent a ton of time and money and my entire identity was wrapped up in being the CEO of a healthcare startup for nearly 18 months. That’s something that doesn’t simply go away–and many founder struggle after this type of “failure.”
I am now reflecting on the lessons learned and things I would do differently in the hope that this wisdom may help other founders, or even larger businesses when deciding to pull the plug on a product line or service.
Simplify and Get Crystal Clear About Your Audience
I had a conversation with Tim Ferriss, the startup guru and efficiency expert in mid-June; I had reached out a few weeks before and anyone who knows him knows it can take a lot before his assistants will get you through to him. I very rarely reach out to the “big guns” I know but I desperately needed help because my company revenue was starting to slow, we had tapped out of our network, and for a variety of reasons, funding wasn’t happening.
His advice was to narrow the focus, eliminate 2 out of the 3 membership options, choose one very clear audience, and strip out anything not needed.
I took much of his advice and redid the entire website, choosing our most popular, simplified protocol. But choosing a single audience felt impossible and my co-founder and I wanted different audiences. I look back on this now and see it as a critical error.
In my consultancy I help clients define what matters most, prioritize where to invest energy, and move forward with confidence. I’m known for quoting Seth Godin: “if you speak to everyone you speak to no-one!”
But in my own startup, we were trying so hard to get clients and please the people in our lives that we became disjointed.
I could have used a consultancy like my own to help me at times to get back to the clear foundation. There’s a saying about how the “cobbler has no shoes,” and much of what happened as I built Reve was to lose focus and start building what investors or others wanted.
I knew better and even I got into the trap of trying to do more and be all things to all people. The pressure is real.
But the risk is failure. There were other problems of course, and every startup is different, but I’ve built, advised, and run enough startups to know some of the key issues.
Key Lessons
Focus On One Location First
In our case we expanded too quickly, entering multiple states and taking on bigger expenses than we were prepared for. Scaling without adequate funding is risky, even for experienced founders. Starting smaller and testing first would have allowed us to grow more sustainably.
Focus On One Core Audience At First
We tried to serve everyone at once. I should have concentrated on women like me — midlife, navigating perimenopause, looking for holistic health solutions. Serving one audience well creates clarity, alignment, and stronger impact.
Anchor in Your Story and Purpose
My personal health journey including my the surgeries and years of being dismissed should have remained the guiding star. Letting your story inform decisions keeps your work authentic and aligned with your mission.
Build One Core Product or Membership First
Offering too many programs at once diluted the experience. Focusing on a single flagship product would have allowed us to perfect the offering, build credibility, and create a solid foundation before scaling.
Protect Your Values
We chased growth, funding, and scale, which sometimes led us away from our original purpose. Every initiative should be measured against the question: does this truly serve the people we set out to help?
Be Sure The Whole Team is Aligned
Does one founder want to change the world and the other wants a lifestyle company? These are very different missions and while both worthy do not intersect. Without steering in the same direction no ship arrives at a friendly port.
Why This Matters for Founders and Leaders
Experience is always valuable even when time and money is at stake–IF you can take the lessons and apply the knowledge to something new.
In our case, even with clear validation and pilots, surveys, and small programs, we couldn’t have predicted circumstances out of control like a recession-type economy and “competitors” with more than 50 million in funding. We could have done everything “right” and still chosen to close the doors because the only way to succeed would have meant half a decade of struggle and a shit-ton of money.
At some point, even if everything is going great, if the values or purpose of the company or team shift, and people are no longer aligned, it makes sense to step away. There are so many factors behind the scenes of any closure that most founders don’t (or can’t) share.
Failing a startup does not mean failure as a founder. It is an opportunity to take what you have learned and apply it with greater wisdom, purpose, and focus. I encourage every “failed” founder to spend time reflecting on all the pitfalls and possible preventions, and, when they are ready, to rebuild again.
I will create again, but this time with the lessons of Rêve guiding every step.
Julie Elaine Brown
