According to the statistics that are released each year, an increasing number of people are choosing to travel the path of entrepreneurship to learn the skill of operating a successful business. As much as most of us appreciate hearing about business stalwarts who are establishing a name for themselves in the realm of business and entrepreneurship, many people regrettably fail and fall flat on their faces. The single largest reason for business failure is ignoring or downplaying the market risk. Most entrepreneurs place far too much attention on developing their technological platforms which is fair given that many founders are ardent technologists and far too little emphasis on ensuring that those platforms offer meaningful commercial value. Many entrepreneurs waste a lot of money on a product or technology while looking for a solution. ” But itll kill you if youre incorrect about the market, not the technology. According to the authors, a preferable method is to spend six months talking with potential clients to understand their needs and verify your concept.
Founders should be mindful of dismissing the advice of a venture investor or a potential client who has spent time with your company but has decided not to invest in it or buy your product at this time. One of my most successful client firms, for example, fought for years to commercialise a really popular product. Thanks to Kleiner Perkins VC Randy Komisars counsel, they finally devised a pricing plan that helped them flourish. He had hesitated on investing in the startup because he believed their chances of outperforming incumbents were too slim.
Going too quickly
Most startup experts advise that you should go first and go quickly – get to market first, stockpile the finest talent, and run full throttle while pouring money into the boiler. And although this is true in certain cases, I have seen far more businesses fail as a result of their rapid expansion. Finding the appropriate personnel to staff your new company may be difficult, and you want the best. The New York Times piece "How to Hire the Right Person," based on more than 500 interviews, draws together some of the greatest hiring tips from CEOs hes contacted. Bryant lays down some of the finest advice hes received throughout the years, from questions to setup.
Customer Engagement is Null
Internal customers (workers) and external customers are the two most significant variables for every organisation. Any organisation must communicate with and engage with its consumers frequently. These regular encounters will give you an indication of how well youre doing and whether you need to make any changes. Most people who refuse to listen to what their consumers have to say fail poorly and fall quickly. After all, you need consumers as a business, but as a customer, you have a lot of other alternatives to choose from.
Putting an excessive amount of emphasis on little details
As a leader and business owner, its critical to be aware of what your staff is up to and to request regular reports. However, there is a fine line between being authoritative and being a tyrant that meddles excessively in the way their team works. Once youve assigned a task to your management team, trust them to do it. Dont keep intervening; instead, trust them. The more faith and trust you place in them, the more ownership they will demonstrate.