Why Do Startups Fail?

A multitude of potential pitfalls can negatively impact entrepreneurs as they eagerly try to build their fledgling companies…and basically crush their spirit if allowed. In my experiences, there are four reasons that stand out the most:

  • Lack of Research – Research is imperative. It provides insight about what your competitors are doing so can stay several steps ahead and create innovative ways to develop and market your offering. It also provides you with insight about the costs and components of running a successful business in your target industry. Spending time investigating a specific market will show whether there is a demand for your intended offering. Successful research will help shape your vision and strategy. Without it, you risk the future viability of your business.
  • Poor Planning – There are a lot of moving parts that need to come together before your finished product is ready for sale. You have to coordinate delivery timeframes with vendors and partners who are all part of your launch schedule. In addition, you need to plan for bill payment. Figure out what your accounts receivable schedule looks like so you can continue procuring supplies and services you need in a timely manner.
  • Boiling The Ocean – Sometimes it’s hard to know exactly what will be a hit in the market. Hindsight is always 20-20. Sometimes you decide to make six different handbag styles, each available in seven different colors because you don’t know which one will be “the” one until it suddenly appears in an issue of InStyle and you now need to satisfy excessive demand without nearly enough inventory because you spread your resources too thin….ahh, but I digress. Focus groups can help! Talk to your target market and gather feedback. It may push out your delivery timeframes but the insight can help perfect your offering.
  • Nothing Unique – If there is nothing new or different about your product, nobody is going to buy – no matter how much you love it. It’s hard to pull off those rose-colored glasses and embrace the reality staring back at you. Leather handbags? Not otherworldly. Romance novels? Been there, read that. The key is to make your work stand out. Dig deep and find what sets your product apart from the competition and play that up otherwise it’ll get swallowed up into the abyss. Perfect your offering. You care, so figure out a way to make everyone else care. Establish a connection, show how them why they should be invested, convince them why they need your product.
Courtesy of www.digitalbuzzblog.com

Courtesy of www.digitalbuzzblog.com

THINK BIG…THEN ACT

Bill Rancic has certainly come a long way from his win on The Apprentice. He was just featured on The Rhode Show to talk about a new campaign he is running with Intuit Quick Books to celebrate the success of small businesses in America, which have accounted for two-third of new jobs created in the United States in the past decade. They’d run a similar campaign a few years back and it was so wildly successful, they’re going to make the deal even sweeter this time around.

Original ‘Apprentice’ Winner Bill Rancic Shares Advice – The Rhode Show

Small business owners will get a chance to compete for a free ad that will be aired during next year’s Super Bowl. Imagine your company being among the ones that paid $4.5 MILLION dollars for their precious 30-second spot. The opportunities that can result from that exposure absolutely boggle my mind.

But they aren’t stopping there. Procuring funding for expansion is always a costly prospect in the form of sky-high interest rates so Intuit is creating a fund to help small businesses finance their longer-term activities as well as bringing together a network of small business experts to share experiences and offer guidance and advice.

There’s MORE!! Bill goes on to share some of his own tips in the video clip below. It’s super-short and worth a watch. He basically has three tips for aspiring entrepreneurs:

  • Be Agile – You need to adapt and be flexible and respond to changes in market influences.
  • Don’t Go It Alone – Tap trusted subject matter experts, learn from their mistakes, drink in their advice.
  • Work Hard & Live Lean – Don’t expect a paycheck quickly and learn to do without while you grow your business.

All extremely important messages. I have one more to add to the mix:

  • Do Your Research! – Learn about every facet of your target industry, understand all the nuances, dependencies, challenges, pitfalls. Figure out what the competition does well and come up with ways to do it better. Embrace innovation. Soak up knowledge like you’re a sponge and then apply it to your long-term strategy. These activities will save you a lot of money, aggravation and disappointment. Trust me, I know.

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