Article

Carl Conton
Carl Conton 12 April 2018
Categories Innovation & Trends

Has Your Startup Hit A Dead End?

It is often said that the best entrepreneurs evolve, meaning that they successfully redefine their business models to match their changing understanding of their opportunities. For many, this means focusing on a new customer base, leveraging a new channel, repositioning a brand, restructuring pricing or making changes to the team.

Overestimated business intuition

The bigger plan, however, is sometimes destined not to succeed regardless of how much tweaking the entrepreneur does. Fundamental flaws in a business model can loom out of sight, only to be unearthed when a company first tests the waters by making its service available to customers. For example, in some cases, it might turn out that customers value something very different than what a company is offering.

The entrepreneur’s intuition may have been off. Even worse, this situation can arise after an entrepreneur does the proper diligence. While an entrepreneur may have conducted surveys that demonstrated resounding customer interest in his service, customers may still not be motivated enough to act when it comes time to sign-up or pay. Yes, customers often can’t predict their own behavior.

Retrospective vision is a must 

Regardless of why an entrepreneur hits a dead-end, it is important for him to take a step back and look at the bigger picture. Doing so is a much more difficult proposition that one might expect, as the conventional wisdom told to entrepreneurs is that they must be perpetual contrarians; they must champion their ideas even when everyone around them, fellow entrepreneurs, investors, friends and even family, says that they’re crazy.

Well, the conventional wisdom isn’t that practical. Entrepreneurs do need to assume that most people won’t “get it”. Some, not all, of the other folks with relevant domain knowledge, however, should see the vision. If every knowledgeable colleague they know says that it’s a terrible idea, it probably is.

Ignoring underlying issues

Another indicator of a fundamental business flaw comes in the form of an issue that the entrepreneur already knows about but has elected to ignore. It’s the question they admit to always getting stuck on, but have still somehow decided won’t hamper their progress. “Yeah that is a problem, but we’ll just work through that.” If you find yourself unable to answer a key question about your business it may be your Achilles Heel. It’s an optimist’s natural tendency to ignore underlying issues. If you find yourself unable to answer a key question, it’s time to take a step back and re-evaluate. Clear your head and reassess the practicality of your venture.

While other people’s opinions can be a helpful leading indicator, at the end of the day an entrepreneur needs to be the one to decide that his business plan is flawed. If the plan is in fact flawed, the sooner that he figures that out, the better.

Original article

Please login or register to add a comment.

Contribute Now!

Loving our articles? Do you have an insightful post that you want to shout about? Well, you've come to the right place! We are always looking for fresh Doughnuts to be a part of our community.

Popular Articles

See all
Digital Marketing Vs. Traditional Marketing: Which One Is Better?

Digital Marketing Vs. Traditional Marketing: Which One Is Better?

What's the difference between digital marketing and traditional marketing, and why does it matter? The answers may surprise you.

Julie Cave
Julie Cave 14 July 2016
Read more
How to Review a Website — A Guide for Beginners

How to Review a Website — A Guide for Beginners

A company website is crucial for any business's digital marketing strategy. To keep up with the changing trends and customer buying behaviors, it's important to review and make necessary changes regularly...

Digital Doughnut Contributor
Digital Doughnut Contributor 25 March 2024
Read more
The Impact of New Technology on Marketing

The Impact of New Technology on Marketing

Technology has impacted every part of our lives. From household chores to business disciplines and etiquette, there's a gadget or app for it. Marketing has changed dramatically over the years, but what is the...

Alex Lysak
Alex Lysak 3 April 2024
Read more
Sales and Marketing Collaboration: A Recipe for B2B Success

Sales and Marketing Collaboration: A Recipe for B2B Success

In the world of B2B, the age-old rivalry between Sales and Marketing often overshadows the potential for a fruitful partnership. Yet, when these two departments align their goals, strategies, and efforts, the results...

Zsofia Raffa
Zsofia Raffa 12 September 2024
Read more
3 Reasons Why Building Social into Marketing is a Significant Competitive Advantage

3 Reasons Why Building Social into Marketing is a Significant Competitive Advantage

Understanding the role of social media in your business is important; however, before you get caught up in tactics first ask yourself “Is my business social?” If not, or if you aren’t sure, here are 3 reasons why...

Anna Fox
Anna Fox 31 October 2024
Read more