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The #1 Reason Why Business Fail Is Wrong


CB Insights, a large Private Equity firm, recently updated their analysis of why businesses fail.

And, once again, they get it spectacularly wrong!

Sure, lots of businesses fail. Depending on how you count it, somewhere between 20% and 70% fail in their first year.

But do you really believe that the #1 reason - accounting for 42% of business failures - is a lack of need in the market?

That means that hundreds of thousands of entrepreneurs come up with stupid ideas every year, they get them funded enough to get them to market, and then no one needs the product?

That's nuts.



The Rest of the Story...

How do you know it's nuts?

You know it's nuts because they say the #8 reason is "Poor marketing " - behind "running out of cash", having the "wrong team", getting "outcompeted", "pricing or cost issues", "unfriendly user product", "product without a business model".

Sure, most of the time, the marketing was great, but the business failed anyway?

Maybe we ought to change the definition of "good marketing" to "build a Web site, do some SEO, post a blog, and yell 'come and get it' to an empty room."








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