by Ashwin Gulati, author of “Soul Venture: A True Life and Death Journey into the Startup Culture“
What’s the number one reason startups fail? The founders.
I’ve seen too many promising ventures fall apart not because the product was weak or the market wasn’t there — but because the people behind it couldn’t stay aligned. When founders hit a major disagreement and don’t resolve it fast, the startup usually doesn’t survive. I’ve lived this. If my last business partner and I had taken the time to truly understand ourselves — and each other — we might have made different decisions. We could’ve spared each other a lot of heartache.
A failed partnership cuts deeper than running out of cash or getting outpaced by the competition. Worse, its consequences tend to be permanent. So if you’re wondering whether you’re cut out to run a startup — or if you’re trying to figure out whether a co-founder is the right match — here’s my advice: approach it like a college application. Seriously.
And no, I don’t mean chasing resumes and GPA-style credentials. I mean asking the kinds of questions colleges ask in their essay prompts — the ones designed to get under the surface. They’re remarkably effective at revealing who someone really is.
Due Diligence: College Applications
I stumbled upon the power of college applications as a form of due diligence when I was helping my kids tackle their own college applications. At the time, I was searching for a better way to help a partnership regain its footing after some unexpected (to them) turbulence — and trying to find a way to make startup teams focus on each other, not just numbers and forecasts.
There it was, right in front of me: those college essay questions. My kids may have groaned, but I realized they’re ideal and well worth the time. Just as colleges need to know how someone thinks, what drives them, and how they approach challenges, so do startup founders. And so do their investors.
I adapted the prompts from college context to startup context and came up with these eight essential questions. They cover just what entrepreneurs should ask themselves, as well as the key factors and approaches investors need to know. Consider it a vital look in the mirror.
Do this and you may avoid a startup disaster:
- How has your leadership experience positively influenced others, helped resolve disputes, or contributed to group efforts over time? Give an example.
- How do you express your creative side — such as in problem-solving or original and innovative thinking, or an artistic pursuit?
- What would you say is your greatest talent or skill? How have you grown and shown that talent over time?
- Have you ever taken advantage of a significant business opportunity or worked to overcome a business barrier you have faced? Give an example.
- What is the most significant challenge you’ve ever faced? What steps did you have taken to overcome it? Describe how this challenge affected the achievement of your business goals.
- Describe a business case that inspires you, and how you have furthered this interest inside and/or outside of the business setting.
- What have you done to make your community a better place?
- Beyond what has already been shared in your business plan, what do you believe makes you stand out as a strong candidate for your startup success?
Other Factors? Sure. But Everything Starts and Ends with You.
Yes, markets shift. Timing matters. Execution, funding, even geopolitics can tilt the table. But none of that changes this: the biggest variable in any startup is the people behind it. I’ve seen founders blame everything from interest rates to a surprise pivot by a competitor. It reminds me of tennis players blaming the sun, the wind, or their shoelaces after a loss. But at some point, you have to own your game.
If your startup fell apart because of poor timing or external shocks, fair enough. But your ability to adapt, stay aligned, and lead through it? That’s personal. That’s on you.
If I were running a startup fund today, I’d make every founder submit personal essays answering the eight questions above. Bonus points if they’re handwritten. Immediate red flag if someone else writes them. If high schoolers can do this to get into college, startup founders can do it to earn serious capital.
These essays will tell me more about your readiness than any slick deck or five-year forecast. In fact, I’d ask for just two things: the essays, and a one-page business plan. No fluff. No hype. Just the raw material that actually matters — the founder.
Start there. Trust me on this.
Ashwin Gulati has launched international ventures, helped start-ups take off or land, and copiloted complex transitions for over 100 companies in various industries in the UK, US, Spain, and France. With 30 years in the trenches, he has identified the hidden pitfalls, unspoken truths, and personal twists that ultimately determine a venture’s success or failure. His new book is “Soul Venture: A True Life and Death Journey into the Startup Culture“. Learn more at www.soulventurebook.com.