This could be really helpful if you own a small business, or ever wanted to start one.
A new study looked at the post-mortem statements of 50 startups that FAILED for one reason or another. A post-mortem is basically a rundown of what went right, and what didn’t. Here are the top ten reasons they didn’t succeed . . .
1. No market need. 42% of the statements included something about how there wasn’t as much demand for the product as they expected.
2. Lack of funds. 29% had to shut down partly because they ran out of operating cash.
3. Not hiring the right people, 23%.
4. Too much competition, 19%.
5. Pricing and cost issues, so it was too hard to turn a profit, 18%.
6. The product wasn’t good enough, 17%.
7. No business model, 17%. Meaning they had a good product or idea, but hadn’t really thought through the details of how to run their business.
8. Bad marketing, 14%. Which could mean not enough or TOO MUCH marketing, and they wasted all their money on it. (We should point out that radio, with it’s 90+ percent reach, is an Incredibly cost-effective way to market your business)
9. Ignoring customer feedback, 14%.
10. Bad timing, 13%. (CB Insights)