42% of all failures were down to not providing a product or service that the market actually needed.  This at first seemed surprising to us but when you think about it closer you have to imagine that a lot of this is down to them not providing anything different to what is already on the market.  They may think they have a better product because of one little benefit but it was probably not enough to warrant consumers switching. 

29% of businesses failed due to lack of money, this we can believe and are surprised that it isnt greater.  Many businesses do not appreciate the value of cash flow and budgeting, especially startups and small businesses.  The recent Covid outbreak is testament to that as many businesses (large and small) were closing within days of the lockdown announcement.  Too many startups don’t calculate the costs correctly or plan the business.

How many times have we seen people on Shark Tank/Dragons Den pitching their idea and the costs are miles off, the price of the product they are offering is skyrocketing due to their cost calculations and wanting to make a profit.  They fail to realise that consumers may not pay that amount of money for a product or service similar to something they can get for a ⅓ of the price.  You need to provide something pretty spectacular to warrant the higher price, especially if you are a startup.

We all live in a freemium economy nowadays, many apps are free for example and when someone tries to offer a similar app for a price people are more likely to go for the free app, even if they are subjected to advertising or data capture.

Team failure is next on the list at 23%.  Some people get into business with the wrong people, even when there is a small team of founders you still need to have a great team, just because one of you has the money doesn’t mean you should go into business together.

Founders can sometimes all want to be in charge, you need to work out who is responsible for what within the business and stick to that.  One of you may need to be ranked higher than the others but that’s just how it is, if you are not comfortable with the thought of owning a business but not having the final say then don’t start.  Set the ground rules from the star and stick to them.  Too many chiefs and not enough indians sometimes!

This one seems really strange to me, it comes in at 19% and its self explanatory otherwise they would have not been competitors and would have closed before you.  

Competition is good and needed, you need worthy rivals in business as it will help you focus on how to be better.  Don’t try and beat your competitors, you will be wasting your time.  Pick some and balance yourself against them, if they are better at marketing than you do something about it.  Don’t try and compete, try and identify your own weaknesses based on their performance.