Without a doubt, failure is a ghost that haunts entrepreneurs . And it is that after months of work and commitment dedicated to an idea, the possibility of not hitting the right business can be unbearable. However, just before starting, the coin is in the air and anything can happen.
If you have the idea, the business plan, experience in the industry in which you will compete, market studies that support your product or service and even potential investors, but the elements do not seem to play in your favor, then you may need to say goodbye to the company. original idea.
But how do you know when it’s time to say “goodbye” to your newly created business? Martin Zwilling , an expert startup mentor and angel investor, says there are several signs that the entrepreneur must detect to change course.
- Without a plan there is no opportunity
You may have the most innovative idea in the industry, the best product to market and an enviable portfolio of prospects, but if your goals are not clear, how and where will you lead the company? Lacking a business plan transmits negative messages, such as lack of professionalism and low confidence .
- Only you believe that
You assure that your idea is perfect because it meets your needs and aspirations; But just because it’s great for you doesn’t mean it’s great for the target market. Before undertaking (and getting into debt), do market research and analyze your direct competitors well, only then will you know that you are on the right track .
- Too much competition
Do you know exactly how many direct competitors you will have in the area where you will operate? If there are too many competing in the same territory, chances are that your opportunities to stand out are limited . A good exercise is to Google which companies offer the same as you, and if there are more than 10, run!
- What are you doing there?
The mistake that entrepreneurs usually make is starting their business in an industry with which they have never had a relationship . This, in the medium term, results in a series of bad practices such as bad negotiations with suppliers, hiring of unskilled personnel and dissatisfied clients. Value your experience and undertake in familiar terrain.
Before making the decision to abandon the original business idea, you will need to analyze some factors . Stephen Key , also an entrepreneur mentor, recommends answering the following questions:
- Have you already used up all your resources and still have not achieved a purchase order?
- Have you exposed your model to various investors, taken their advice and put it into operation?
- Have you already approached the right prospects?
- Are you completely sure that the marketing channels you chose are the correct ones for your product or service?
Be humble, accept your mistakes and design a strategy that helps you get out of the original idea and start another in a safe and more prepared way.