Unless you go beyond the headline of the article that states “96% of businesses fail within 10 years!” and figure out why that percentage is so high, your startup will be just another failed business. I believe going into business without knowing if your product or service will work or if it’s even needed in the market are factors that will determine if your company will end up in the the 4% or sink with the 96%.
According to Stav Vaisman’s piece on Huffington Post, here are four signs it’s time to go back to the drawing board:
If you cannot monetize your idea without running into constant dry spells, it might be time to give up on it. Stav explains that your idea could either be ahead of its time or just not a market need.
Inability To Form A Business Plan
If you have a hard time coming up with a coherent business plan, it’s because your idea isn’t as solid as it should be. If you cannot describe your business to others in a way that doesn’t sound vague or confusing, it’s probably because it’s not a good idea. You should be able to tell people exactly what it is that you do, how you do it, and who you aim to do it for.
Whether you’re unhappy because your business is not going as well as you hoped, it’s no longer a good idea, or you’re simply bored at this point, it’s time to walk away from it. Like any relationship, you can’t maintain your business in a healthy way if your heart is elsewhere.
The market is constantly changing; therefore, your idea might have started out as a market need but is now no longer necessary. Although you may not want to feel like you’ve wasted time, money, and energy, you also don’t want to continue to invest those three things into a dead product. It’s okay to make some adjustments or come up with a new idea completely so that it’ll fit in the current market.
I’ve realized that the longer I’m in the entrepreneurial lane, the easier it is for me to come up with ideas. When you’re constantly taking in new information and surrounding yourself with people who think like you, it’s not as hard to go back to the drawing board when things don’t go as planned. Don’t ever feel like it’s the end of the world because your idea wasn’t good enough to make your business last; entrepreneurship is all about figuring out what works and what doesn’t.
To read Stav’s full post, click here!