Do You Know The Biggest Reasons Why a Business Fails? It's Not Because of Tech & Creativity
Why do businesses fail? What do you think? What can we learn from it? How does a business fail?
Here's some interesting stats in the image from CB Insights.
Most of these points of failure can be grouped into 1 of 3 areas.
What does it tell you?
Over 80% of businesses fail for reasons of:
Poor #Marketing,
getting #outcompeted,
and no #businessmodel or roadmap.
What does this mean? #StrategySaves
Here's the breakdown:
1. Ran out of cash/failed to raise new capital - 38%
2. No market need - 35%
3. Got outcompeted - 20%
4. Flawed business model - 19%
5. Regulatory/legal challenges - 18%
6. Pricing/cost issues - 15%
7. Not the right team - 14%
8. Product mis-timed - 10%
9. Poor product - 8%
10. Disharmony among team/investors - 7%
11. Pivot gone bad - 6%
12. Burned out/lack passion - 5%
Looking at this list, the biggest methods of failure come down to 3 main things that are happening, or rather NOT happening:
>LACK of TRACTION in what you create, do and deliver online
>NOT TARGETING the right people at the right time
>NO TRUST with your ideal audience
The low-hanging fruit? Pareto's Principle (the 80/20 rule) states that 80% of these problems can be the biggest and easiest to fix.
The solutions can really fit into how we overcome these big mistakes, through developing persuasive positioning, creating tenacious targeting, and creating connected & craving clients.
This is about designing your business, and delivering it with strategic execution, your roadmap.
What can we learn?
Planning & #strategy is not a "to do list". It's not even a list of goals you want to achieve, or "what do you want to become in 2022?" (like you're a flower? lol)
It's much deeper than that.
It's designing in the things that you want your business to have, to be able to do, to get you to where you want to be. That's what a strategy does, it includes the why and the what. It's designing in the principles that are important to you, to take you where you want to go.
Where do you want to go in 2022 & beyond and what are you designing your business to do exactly?
How are you guarding against these possibilities?
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