5 Common Traits Of Businesses That Will Fail In 2015

By Josh Linkner, Forbes.com, 24-04-2014
As we get full swing into the second quarter of 2014, the companies in the Detroit Venture Partners portfolio are forecasting into next year. While we obviously hope 100% of them continue to grow in the marketplace in the coming year, many businesses inevitably will fail. It’s not for lack of effort, interesting differentiation in the marketplace, or even determination to be the best;  there are common traits of businesses that I’ve seen fail – are you avoiding them or exhibiting them?

1. Following the “flavor of the week” trap. As you build your company, you’re constantly tweaking the product to fit market trends and needs of your clientele – and that’s a good thing. Small modifications are what will take you from “good” to “great,” and then from “great” to “standout” and “market leader.” However, falling victim to this trap is all too easy. Just because something is popular or top of mind with the general public doesn’t mean you have to do it – or invest in it – today. Continue to stick with your area of expertise and focus on making that the best you can, rather than trying to be something helpful to all people. By muddying your vision, your would-be-loyal clients are lost in the shuffle, along with everyone else in the pack.
2. Expecting competitors to stand still. You’re constantly innovating and reinventing (and if not, you should be), so why would you think everyone else isn’t doing the same thing? In today’s world, speed is crucial – beating someone else to the punch is the advantage given to startups over their Goliath counterparts time and time again. If you’re thinking that anyone else is standing still, you’ve already lost the race.
3. Protecting old ideas instead of inventing new ones. Just because something worked before, doesn’t mean it will continue to be relevant. If you want to stay top of mind with your audience, you’ll need to change along with their changing needs – at the same rate. Saluting the flag of the past is a quick way to stagnate, and as the old saying goes, if you’re not growing, you’re dying. Ban the phrase, “that’s the way we’ve always done it” from your office and encourage employees to think differently, challenging their own status quo, day in and day out.
4. Making short-term decisions that will catch up with you. Sometimes, for a startup, you need to act in the moment – after all, you need to keep the lights on. While I can understand this survival mode, a more effective approach generally is to follow a long-range visionary plan. As you sit down to do any sort of corporate strategy, it isn’t enough to think of how many customers you’ll have in the next quarter, or which feature to add over the course of the next 30 days. Instead, you’ll need to think of what you want this company to do, represent, and stand for – perhaps five years from now. Then, work backward to make sure your short-term goals fall in step with your broader, longer term vision.
5. Failing to adapt to changing client demands. Although the flavor of the week trap is a dangerous one in terms of the masses, it’s equally dangerous to avoid feedback from the people already buying from you. Your customers are gems – and should be treated as such. If they’re requesting a different process for invoicing, it’s worth thinking about, as would be a small feature addition or referral program. Because they’re out in the marketplace acting as a loudspeaker on your behalf, you owe them the courtesy of helping meet their needs. By doing so, you’ll remain at the top of their list, and they’ll in turn keep your lights on. Everyone wins. >>>