A new study from a research firm called CB Insights revealed that almost HALF of the 125 startups they looked at died 20 months after starting. The main reason for their knockout was because there was NO need for the product or service they sold.
Why Is This Happening
All day, every day, I help small business owners research their own business viability and the proof of existence for their specific niche. Sadly mostly in Canada, I meet a lot of resistance about both niching and researching. Niching is uncomfortable because to some, it’s pigeon-holing themselves. Researching is uncomfortable because it actually involves talking to strangers and near-strangers. If you’re a business owner and you don’t do the upfront work to ask the right questions of the right people, then you might just end up part of the statistic.
Hoping For Your Market To Find You
I often talk about the woman I met while networking, who became a Grief Coach after going through her own mother’s painful death. After 2 years of trying desperately to grow her business, she discovered that most people get grief counseling (similar to coaching) for free through their church or other hospice programs. Like most businesses, she didn’t know that she was supposed to strategically confirm that there was indeed, a paying market for her services. Without first identifying several target groups and having several different products or services to offer them, you can’t systematically and strategically vet them.
How To Beat The Odds
My biggest advice to any new business is to find a good coach. Not any coach. Someone who is just a few steps ahead of you and who has demonstrated success in your own industry. The next step is to implement everything they tell you to do. That’s how I doubled my 20-year corporate pay cheque, 2 years after launching my own small biz. My other advice of course, is to talk to your potential clients. Let the market dictate your niche and your services. Don’t let your pride, ego, assumptions, fears, dreams and passions do it.