42% of companies end up failing because there isn’t enough market need for their product or service – it is hard to comprehend and pivot when there just might not be a market for what you love!
Businesses earn money in exchange for a product or a service. The higher the need for their product or service, the more people will pay for it. A product can be worthless or priceless based on the needs it satisfies (if any). That’s a simple concept – almost simple enough to slip out of our minds too often.
Now, all businesses consistently aim to sell more and more. For this, they could have the perfect infrastructure in place, but it all boils down to what exactly they’re trying to sell. Failure is inevitable if there’s no market need for a product or a service that a startup offers. In 42% of the cases of startup failure, people tend to focus more on getting absolutely everything spot-on, except for the one thing that matters: the right product.
A successful business model always prioritizes for their product to solve a particular set of needs in the targeted market. Startups shouldn’t take a step further before confirming that what they’re planning to offer is needed. In-depth market research and giving out free samples for feedback could help with this. Do whatever it takes in the beginning to ensure the fact that you’re going to ‘make something that people need’. Doing just this puts you above 42% of the startups in terms of chances to succeed!
References:
- https://www.cbinsights.com/research/startup-failure-reasons-top/
- https://www.forbes.com/sites/deniselyohn/2019/05/01/why-start-ups-fail/#dc4ba5128a5d
- https://medium.com/swlh/why-startups-fail-and-what-to-do-about-it-bffdc7969bd1
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