Top Ten Reasons Companies Fail

by Justin on November 18, 2009

Five Stars for Failure album cover
Image via Wikipedia

Just Read this great article on Techflash.com. Full article can be referenced here.

Talking about more traditional businesses than the online niche marketing ones this is still a very valid read for all those of you out there who are trying to build up your probable work-at-home online business.

The reasons come from a lecture by aQuantive founder Scott Lipsky who came up with a list of 721 reasons, however for his talk at Entrepreneur week he shortened his list to just 10.

He maintains his reasons are in order of importance and I would argue that they are just as important for us Niche Marketers as they are for traditional businesses, although the order may be slightly different.

Below are his reasons with my comments:

1.) WRONG TEAM. For affiliate marketers that really means wrong products and more importantly wrong joint venture partners. If we choose to promote the product of someone who is providing crap or overpriced or out of date information we suffer too.

2.) NOT FOCUSED: This is absolutely critical and I would argue for affiliate marketers this is number one. If we lack focus we will just leap from project to project and from course to course. Make sure you do one thing at a time and remain laser focussed on that one idea.

3.) NOT AGILE: Again this is tied in with focus. You need to make sure you know when to quit. If you are not getting signups and you are not getting sales it means you are focussing on the wrong project. Its easy with sites like flippa.com to offload niche sites that aren’t working. MAke sure you do so until you find the areas that you are strongest. If you don’t you will just waste time and money. If you can’t be flexible as well as focussed your chances of success are limited.

4.) PRODUCT MANAGEMENT ISSUES: If you aren’t providing what the customer wants you are wasting your time. Listen to them and provide what they want.

5.) POOR MARKET TIMING: This is interesting and it is always tempting as niche marketers to jump straight into the biggest and most succesful niches. It is certainly possible to come in to the market late as Google showed with search engines, however the so-called Gurus have an early adopter advantage and huge lists which makes life much easier. I suspect if many of them were starting out now they wouldn’t be where they are today. Still find the right product, ideally one that has been tested but that you can do better and away you go.

6.) WRONG CHANNEL STRATEGY: A lot of people today tend to be focussed on the wrong channels. Ultimately you have to get a good website and get traffic to it. Don’t get sidetracked by glitzy technology and make sure you are selling your product where the market is.

7.) WEAK EXECUTION PLAN: “I will leave Scott’s words here: “If you don’t have a plan to execute and if you don’t have a way of measuring your own success … you will lose your business.” This in my mind is number one for affiliate marketers.

8.) UNSUSTAINABLE BUSINESS MODEL: Make sure your business can grow. I can think of numerous wannabe gurus whose product launches left them in the lurch because they were unable to cope with the demand. Also be aware of what else is going on and who else is out there.

9.) FUNDING PROBLEMS:

This isn’t such a problem when first starting an online business, but still you really need to have money to invest in websites, software and some training.

10.) BAD IDEA: I have been following Eben Pagan’s course about becoming a modern guru. One of the most important things he teaches is to make sure there is a market for your product and to test it.

Reblog this post [with Zemanta]
What are your thoughts on the subject?

Leave a Comment

Previous post:

Next post: