While there are infinite and varying possibilities as to why your business could fail, there are just three that will all but guarantee it.
1. Your business doesn’t provide something people want
It seems simple – sell something people want to buy – so why do so many businesses flounder at the first hurdle? It’s all very well wanting to come up with ‘the next big thing’ but if there’s no market for it then what’s the point?
In some ways exactly what you’re offering doesn’t matter at this stage. What does matter however is that it either solves a problem, makes people happier or it takes away something negative. For extra bonus points, it might even be able to hit all three! If you don’t believe me, Facebook is a great example. The social network solve a problem by connecting you with people you don’t see every day, makes you happier by entertaining you and removes the negative of having to actually speak to people in real life (come on, you know it’s true!)
You might think your new product or service is genius, but unless it adheres to at least one of these fundamental needs, it’s going to fail. Why? Because your idea is worthless without customers who actually believe in it and would part with their hard earned cash to get it. Is your idea something people actually want? Have you seen a demand from your target market and spoken to people (other than your mother) and had a positive response? The value in your product can not be determined by you, it has to be determined by your customer. You can’t base a business on what you think people want, a successful business must be based on what a customer actually wants (whether they know it yet or not!)
Think about your own business right now. Are you offering something that solves a problem, makes people happier and/or removes something negative? If you’re answering yes but your business is still failing, it might be time to move onto point number two.
2. Your business isn’t reaching the right people
It’s all well and good having the most amazing new idea or product, but if no one knows it exists then who do you expect to actually buy it?