Reasons businesses fail

Lesson Details:

Video Transcription – In this video I want to talk about common reasons businesses fail and it might be surprising because usually when first time entrepreneurs start their businesses they first the first impulse is to look at competitors and to look at the competitors kind of in a bad way like oh my god like you know the competitors are out to get me or somebody's gonna steal my ideas or something like along those lines but if we go over the common reasons the most common reason and really take this to heart is implosion what do I mean by that so it's not a failure from outside factors it's a failure from factors within the company maybe you get bad co-founders maybe you don't adopt maybe you're like quit maybe just don't implement some things well and all the other reasons you'll see for ideal level company's idea stage companies that are run by first-time intrapreneurs mostly the problems are from it from within not from outside look within and you'll see that the next bullet points stem from this okay if you cannot sell or promote sometimes it's the marketing sometimes the market conditions of course but most likely it's because you maybe don't have enough marketing or sales expertise or your team members don't and you just can't promote the products or you can't implement the product to a good enough quality that it actually makes people want to buy it's not competitive maybe the competitors ultimately have a better product and you just can't execute to that level so its execution on your part sometimes it's the problem poor planning like if you don't go through the steps of you know like the three sentence business plan or or the you know at least take the market research or you know you don't get the consultations the feedback all that stuff if you skip it or if you give it very little attention and just execute it's not a problem to execute the business earlier because at least you'll learn but the issue is that we're planning the mistakes that you forgot to find during the planning stages they're not gonna go away they're gonna come back to bite you but it's just gonna be take longer and the more you'd be more expensive to fix those mistakes after you've started employment implements in your business and started taking it in a certain direction it's always harder to reverse course that's why finding mistakes in the business planning stage is always best and cheapest can't find all mistakes but you can find many and usually also part of the implosion is lack of resourcefulness or persistence for example you might find that your initial idea wasn't ideal or as good as you thought and this happens all the time people think their ideas are great but they're just a little bit less than great or you know I mean we're biased we're biased towards liking our ideas so you can take any idea you have and just because you're biased it's objectively speaking probably a little less good than you think it is it's just a beautifully versus subjectivity nothing new here but once you realize maybe your ideas not as good you get people get discouraged they maybe have a few failures early like mmm there's no traffic there's no sales and people get discouraged and sort of quit but the real way you create a business is it's through persistence there's gonna be so many problems along the way so many challenges to solve if you're not resourceful and if you don't solve problems you're toast like you can't it's just not gonna happen luckily you have an engineering background and so you're used to the being resourceful and to be good at problem-solving so it's actually a strength of yours already and so you're already starting at a better point the only difference is you have to realize that you're comfortable doing problem-solving in tech technology but maybe not yet comfortable doing problem-solving in business related challenges and marketing relations related challenges it's totally fine it's a leader comfort zone this whole course is about getting it making it more comfortable for you so that you see it's not that hard it's probably actually easier than what you've been doing before just need a few basics so make sure that you're persistent over time resourceful problem you apply your problem-solving skills and that will actually help your business long term but if you don't do that that's gonna be part of the reason why you employ this because you let your lack of confidence stop you from trying and that is essentially that the death of the business so these are the reasons very common reasons almost all the time I see businesses ideal level businesses fail or early-stage businesses fail another thing is sometimes personality like if you don't take feedback well or if you don't work well with others or if you aren't able to adapt to change like some people will give you feedback but you're not able to really incorporate it that will also you know cause problems but it's all within alright that that's really the mindset that is really important the competitors are fine they're good to be aware of and to learn from but the failure is overwhelmingly from something is wrong in the execution process.