Most Businesses fail… sooner or later.
They fail in all sorts of ways: collapsing from the inside, succumbing to outside pressures, etc. In fact, there are far more ways to fail than succeed.
Posts By: Dave Clark
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There are many ways for a startup to fail. Some factors, like regulatory changes or input cost increases, are beyond the founder’s control. However, there are three significant actions that entrepreneurs are often guilty of that can kill your company as fast as anything.
There are many motives to start a business. In a market system at its simplest form, the purpose of a business is to make money. However, you must never forget your “raison d’être,” your company’s real reason for being.
A simple business plan template to follow is to develop a “sniff test.” Hold up the fish (project) – if it doesn’t smell right, throw it away. This is simply a short-hand way to tell if a project is worth a more detailed look.
Strategic thought requires thinking “conceptually” as opposed to “sequentially.” Sequential thinking weighs the pros and cons of each step against its immediate surroundings. Conceptual thinking requires that each step be measured against the larger goal. Perhaps this is best understood with an analogy. Imagine going on a trip from point “A” to point “B.”
After twenty-five years as an entrepreneur, the most common misunderstanding is the difference between “lifestyle” and “scalable” businesses.
There are a tremendous amount of “time-saving” options available to the entrepreneur. Sometimes, they are; Sometimes they are not; and sometimes, the old ways of doing things can be more efficient.
Average and Marginal costs are both important concepts. However, pricing your product according to these costs mechanisms can lead to dramatically different results. Understanding what this means for your business is critical to your success.
You are going to fail! This is the dirty little truth about being an entrepreneur.
There are dozens of factors that influence the trajectory of a startup company. Many things that can kill your operation; for example, high cost of goods, the inability to find qualified employees or simply poor management. However, there are only 3 things that can make your company a success.