As you probably already know starting a business can be hard work and if it fails, compared with the hours you put in, it can reap poor financial rewards. Despite this once you start-up, even if you have multiple failures, it is completely illogical and perhaps impossible to stop.
If you are a first-time (or second/third time) entrepreneur there are many reasons why your business might fail with the most likely reasons coming down to the following;
Poor business model; the business model is not scalable, not set-up in a way you can employ another person (or this is very difficult) or there just is not enough people willing to pay for your product or service which leads on to my next point..
Poor market research; you did not fully understand the market you are trying to enter, the incumbent or perhaps not obvious competition are just too hard to budge, customers are just interested in something new or there just is no market demand for what you are providing and perhaps where you are providing it is wrong.
Poor effort; you had something that could go somewhere but were too lazy to put in the effort, or effort in the right places, to get it going. Perhaps you were not able to build a team that could do so either.
Rarely will a business fail based entirely on something that happens which is out of your control. Take global economic crisis – sure you might get hammered, may have to let people go, and it will be difficult but a robust business model should be able to survive testing times with the profit margin taking the hit.
I am getting to it.. The above things, although perhaps ‘obvious’ on paper, when it comes to really understanding them – nothing works like real experience. And no learning is better than hard-learnedContinue reading “Why you can’t stop the start-up crack”