Beach Walk Insights - Volume 2, Issue 8 - Play time 2m 9s
Throughout my career I've seen many companies succeed bit-by-bit, step-by-careful-step. Sadly, I have also seen companies that simply didn't make it. After some thought, I believe there are three identifiable reasons why companies fail. They are: greed, stubbornness and fear.
Greed: Put simply, the owners get too impatient, too greedy. Once they taste success they become like a bloodhound in a hunt. They over-expand the business, rapidly hunting greater results and more profit. Eventually the over-expansion leads to a level of debt the business just can't support. The banks call time and the business goes 'pop'. Not good. A slower approach to the market, with less debt would probably have kept the company in business - at least for a while longer.
Stubbornness: How many times have you seen the warning signs that a project is about to fail? "Don't worry, it'll be okay" you'll hear people say. "We've been here before". If something isn't working, it's time to cut your losses and move on. Learn the lesson and apply it to the next venture. No point in throwing good money after bad.
Fear: Is this fear of failure or fear of success? I've seen people fail because they didn't believe they could succeed. "What if too many people buy our product? We'll be over-run. We won't be able to keep up with demand". What a lovely problem to have.