I was reading an interesting article today and thought I would comment with my thoughts on the subject line.
The conclusion of the article was that starting a new business is a leap of faith – the article articulates that 99% of new ideas and entrepreneurs fail. I tend to disagree. Nine of ten venture-backed companies do fail but ever wonder the key reasons for it. Let us focus on a couple of them and how the entrepreneurs can improve their chances of success.
Here are some reason why I believe most companies / start-ups don’t see the end of first year in business.
- People
- Aligned vision and passion among founder/s
- Too many cooks in the kitchen – hence lack of direction
- Lack of planning or market research
- Too much planning (analysis for the sake of paralysis)
- No business plan (define problem being solved, value proposition, competitive analysis, market needs etc.,)
- Turning into Zombies (meaning you loose purpose and appeal in market) by not steering the ship based on client and market needs
- Timing was out or no market for the product
- Execution killed it all
- Lack of funding
- Fear of execution
- Inability to evolve strategy and business model quickly
As it becomes easier to come up with ideas, quickly setup companies and generate products and services even in your basement for a variety of reasons – we believe that there is a significant need for entrepreneurs to do their due diligence upfront – We believe there is a significant need for consulting and marketing services that can help put the right amount of rigor in the process upfront such that it helps the entrepreneur reduce the chances of failure.
Open to your comments and thoughts on this blog as would love to hear feedback. Our goal with MarkiTech is to help entrepreneurs wear that parachute before the jump of the cliff by consulting and providing marketing support for commercializing their products.
Nauman Jaffar,
MarkiTech
nauman.jaffar@markitech.ca;
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