Common causes of entrepreneurial failure

There are too many reasons for the failure of entrepreneurship, but relatively speaking, there is a * * * nature, that is, the project is out of control.

To some extent, the initial stage of starting a business is to do a project.

This project will encounter all kinds of problems. For a big company, it is not a problem, but for entrepreneurs, it may be the gap between life and death.

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

For example, policies, P2P policies tightened, and how many startups closed down; Now that the housing market is tightening, many intermediary companies have closed down. ...

In fact, it is easy for us to find that in the start-up period, the reasons for failure mainly come from external factors, and few projects have intensified their internal contradictions when they first started their business.

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

Just like the example of the hornet's nest that others said, it was a travel sharing website when it was made. However, as more and more people use it, it will naturally be found that some people need pictures, so they can upload pictures. If someone wants to watch a video, they can upload a short video. Some people still want to travel routes, and they can increase route recommendations ... Many online entrepreneurial projects are tried out step by step.

What if it is a physical industry? If you want to open a tea shop, don't rush to rent it. Make some milk tea on the street for people to taste and let people 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 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.

Through verification again and again, you will gradually grasp the core of your product, where is its competitiveness, and the risk of out-of-control projects will continue to decrease.