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Common causes of entrepreneurial failure

There are too many reasons for the failure of starting a business, but there is a * * * character, which is that the project is out of control.

from a certain point of view, the initial stage of starting a business is to do a project.

the project will encounter various problems, which are not problems for a large company, but may be the gap between life and death for entrepreneurs.

For example, the simplest problem, the account period of payment turnover, leads to the break of cash flow and often becomes the last straw to crush entrepreneurs;

For example, policies, P2P policies tightened, and how many startups closed down; Nowadays, the housing market is tightening, and many intermediary companies have closed down ... < P > In fact, it is easy to find that during the start-up period, the reasons for failure mainly come from external factors, and few projects have intensified their own internal contradictions when they first started their business.

Therefore, Eric Rice, based on the idea of lean development and creative theory, wrote a book "Lean Entrepreneurship" to guide entrepreneurs. When starting a business project, they should highlight the core, put it on the market and quickly verify their entrepreneurial assumptions. Generally speaking, they should constantly try and make mistakes at low cost.

Just like the example of hornet's nest mentioned by others, it was a travel notes sharing website when it was made. However, with more and more people using it, it will naturally be found that some people need pictures, so they increase the function of uploading pictures, some people want to see videos, so they can upload short videos, and some people want to travel routes, so they increase the route recommendation ... Many entrepreneurial projects on the Internet are tried out step by step.

what if it is a physical industry? If you want to open a milk tea shop, don't rent a shop in a hurry. Make some milk tea on the street for people to taste, so that people can give you feedback. If others don't want to drink it when they see it, then your entrepreneurial idea is a failure. On the contrary, if others think that a certain milk tea is ok, they will continue to optimize it on this road, which is a blind test made by many beverage companies.

after repeated verification, you will gradually grasp the core of your product, where its competitiveness lies, and the risk of out-of-control projects will be continuously reduced.