12 Reasons Why Businesses Fail

Sunday, July 18, 2010, AM | 10 Comments

Naeem Zafar is a faculty member at the University of California, Berkeley, where he teaches entrepreneurship and innovation at the Haas School of Business. He has extensive experience in advising entrepreneurs on starting new ventures in a variety of disciplines. He mentioned the following 12 points in one of his lectures for small businesses. Try to avoid, in your business, the missteps that so many businesses take. Your chances of success would increase by paying special attention to the following:

  1. Solving a problem that most users are not willing to pay to solve your way.

  2. Thinking that you can do it all by yourself – without a founding team.

  3. Lacking trust among team members – and not addressing the issue.

  4. Being overconfident or dogmatic and not questioning yourself.

  5. Lacking a crisp, singular focus – trying to be everything to everyone.

  6. Not having the vision to anticipate changes in the marketplace.

  7. Confusing a hobby with a business.

  8. Pricing incorrectly and not knowing your real competition.

  9. Failing to properly define your market and customers.

  10. Not having enough cash or financial resources available.

  11. Focusing on a market segment too small to sustain you and the others in it.

  12. Starting a business for the wrong personal reasons.

In a Nutshell
Before you start your own business, take time to talk to five potential buyers and users. Start jotting down what they say about their needs in the industry. Repeat on a regular basis.

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  1. 10 Responses to “12 Reasons Why Businesses Fail”

  2. By ultrasound technician on Jul 18, 2010, 4:34 pm | Reply

    Great information! I’ve been looking for something like this for a while now. Thanks!

  3. By corolla on Jul 19, 2010, 4:34 am | Reply

    Some people see things that are and ask, Why? Some people dream of things that never were and ask, Why not? Some people have to go to work and don’t have time for all that..

    Sent from my iPhone 4GSome people see things that are and ask, Why? Some people dream of things that never were and ask, Why not? Some people have to go to work and don’t have time for all that..

    Sent from my iPhone 4G

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