I can’t seem to come up the the exact amount of businesses that fail, but it is safe to say at least half are gone within 2-5 years. I have read all the usual reasons (lack of capital, lack of expertise, etc.), but the truth can be simplified to two reasons: lack of a good idea and going forward with the bad idea. There are very few bad ideas sitting in the failed business container.
And now let me define a good business idea:
First ask yourself, “Do I have what customers want where I intend to sell my product?” lol. Yes you don’t try to sell sand in Saudi Arabia, but it may work on the coast of Alaska. Tap water may not sell in the U.S. but there are some places in the world that would give anything for affordable drinking water. These are just some of my before 5am illustrations. Lets me frame the question again, “Do I have what they want?” In short is my product/service/idea something that is desired by those I am trying to sell it too? This requires research and testing of some nature on the market, area, or customer levels. You must have confidence that you have what they want and your confidence is based on due diligence (research-testing) prior to starting.
The second question is next week so come on back!