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  • Writer's pictureAndy Hamer

Building a Strong Foundation for Business Success: The Power of Asking Why

As a business professional, I have seen the statistics on the number of UK startups that fail within their first few years of operation, and it's alarming. According to CB Insights, 20% of new UK businesses fail in their first year, increasing to a staggering 60% within the following three years. These statistics can be disheartening for those looking to start a new venture, but they also remind them of the importance of building a solid foundation for your business.

CB Insights research has identified several reasons why UK businesses fail. The top reason, at 38%, is running out of cash or failing to raise capital. Other causes include having no market need - 38%, being outcompeted – 20%, flawed business models - 19%, regulatory and legal challenges – 18%, pricing and cost issues – 15%, not having the right team, mistiming products, poor product quality, disharmony among team members and investors, and failed pivots.

It's apparent that running out of cash or failing to raise additional capital results from the other reasons for business failure!

"Why" is, once again, the most powerful word in business!

Why are so many businesses falling short? Many founders lack the commercial skills necessary to identify potential weak points, challenges, and issues that their idea needs to overcome to be successful. They may be strong in the technical aspects of their product but are blinded by their achievements to develop something new. They fail to ask the crucial "why" question.

As someone who helps businesses commercialise their ideas, the foundation of any successful business is understanding as much as possible about market-customer-product analysis. This knowledge allows you to develop a new product idea and ensure it can be commercialised in the first place. If the evidence doesn't support the business idea, stopping there is best and is less painful for all involved. You've learned lessons making you more successful for the next new idea.

It's important to remember that shortcuts in the foundational steps can lead to the statistics CB Insights reports, which are mostly avoidable. As the famous business quote goes, "Failing to plan is planning to fail." Therefore, it's essential to take the time to do your research and develop a comprehensive plan before launching your business.

If you struggle to identify potential weaknesses or challenges, I can help you eliminate the "unknown unknowns." People who come up with product ideas are unique, and my skill is to develop innovative ways to commercialise their ideas.

In conclusion, I encourage all new and existing businesses to take the time to develop a strong foundation and avoid falling into the statistics of failure. By understanding your market, customers, and product, you can set yourself up for success and build a thriving business.

Don't underestimate the power of "why" in your business. Please take the time to understand your market, customers, and product to make sure you build a strong foundation for your business. By doing so, you can avoid the common pitfalls that lead to failure and set yourself up for success.

So, let's commit to asking "why" and developing a comprehensive plan before launching our businesses. Together, we can build thriving businesses that last!

So let's start with a 60-minute discovery session to discuss how I can help you meet your growth objectives. Book a call using this link:

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