Why Do Many Entrepreneurs Fail So Quickly?
By Gil Gerretsen
I’ve met and worked with thousands of entrepreneurs through my businesses, speaking and volunteer work at various professional events. One of the things that has always struck me is how many businesses fail so shortly after their launch, and I have learned a very important insight.
Most people who start a business begin with a product or service that they have invented or have a passion for. They then try to “shove” that offer into the marketplace, hoping that their special insights will drive success. But just because you know how to do something does not mean that the marketplace wants to buy it. Just because you think it is a good idea does not create demand.
Entrepreneurs who make it big take a different approach. They first look around and figure out what needs people have, and then try find a way to resolve that need in a profitable manner.
Here are the questions you should be asking. What is your birthright? What right does your business have to exist? Why should your business continue to exist rather than one of your competitors?
Sure, everyone is emotionally engaged with their business idea, but the marketplace is not. They care about two things: 1) How will you make their life better, and 2) How will you do it better than their current option?
Here’s a way to approach the matter in your mind. If an autocratic government czar were to arrive in town with the task of eliminating unnecessary businesses, would yours be selected to continue or be eliminated? Why? Can you make a perfect defense for your company's right to exist?