Let me guess, you have this idea that’s going to make you millions. No one has heard of it, you dreamed about it one night and now it’s time to make that million dollar idea a reality. So before you start your Kickstarter or even call your in-laws for some capital, you should know the five reasons why 80% of businesses fail:
1: No real differentiation in the market, lack of unique value.
- You need to double, triple check that your idea/product is actually different than what you are seeing in the world. Provide something different than what your competitors are offering. You don’t need to reinvent the wheel but also don’t make another rubber tire and expect it take off.
2: Not really in touch with customers through deep dialogue.
- Most companies think they already know what their consumer wants. It is obvious, right? Wrong. Do your research and understand every part of your customer. Take the time and invest in your customer, chances are you will make a way better product in the end.
3: Failure to communicate value in clear, concise, and compelling fashion.
- Communication is one of the hardest things to master these days. When people don’t know how to communicate, lines get blurry and people aren’t even sure what you wanted in the first place. Make sure you state your mission and purpose from the get-go.
4: Leadership breakdown at the top, founder dysfunction.
- Just because someone comes up with a great idea does not mean they are ready to put in the work. We all have friends right? How many of them would you actually want to work with? Exactly. Choose your coworkers and boss wisely.
5: Inability to nail a profitable business model with proven revenue streams.
- You have got to do your research. It is everything. Just because you thought of a new app does not mean it is going to make money. Who are your competitors? What are your margins? Overhead? All good things to think about before you invest your retirement fund.
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