Strong experience in an industry is one of the highest indicators of a startup’s likelihood for success. This is well-known by professional investors, who often insist on industry experience before they’ll invest in a company. And this makes sense – if you don’t understand an industry, you’re likely to make rookie mistakes that could have been easily avoided with experience. With limited room for error, mistakes lead to quick startup deaths. If you want to start a new company in an industry in which you have no experience, consider getting a job with an existing company in that industry. This might sound crazy, but three or four months is the blink of an eye compared to the years you’re about to commit. Plus, it’s the best form of primary market research you can do. Not only will it give you more credibility with investors and partners, it will also greatly increase your likelihood for success.
If you do go this route, be careful with your employment contracts – you don’t want to sign something that would later prevent you from starting your own company.
