3 entrepreneurship failures

3 entrepreneurship failures:

It is very clear that entrepreneurship is a very risky notion, while it yields a lot of success it can also amount to failed attempts and cause entrepreneurs large amounts of money, capital, time and energy.

This blog encompasses 3 examples of entrepreneurship failures and why such attempts did not succeed.

1.     Hitem Shah the Co-founder of KISSmetrics, a revolutionary person-based analytics platform told that before this venture, he and a co-founder spent $1,000,000 on a web hosting company that never launched. He said that he and his partner were perfectionist who built something they really loved without even understanding what their customers cared about. He says they have now learned to spend smart, optimize for learning and focus on customer delight.

2.     Robin Chase, former Co-founder and CEO of Zipcar and current CEO of Buzzcar; said that she built a customer based website, completed it and then asked the customers about it. With company, GoLoco – social online ridesharing – she spent too much money on the website and software before engaging with her first customers. She says that getting to customers as fast as possible and learning from them is the best way to build a product.

3.     Michael Hyatt; a New York best-selling author of Platform and a serial entrepreneur said that when starting his company he made the mistake of borrowing money to fund the growing business. Unfortunately, he did not understand the difference between rapid growth and healthy growth. Eventually, the companies’ growth consumed all the capital and the business failed. He proposes that new entrepreneurs should never let growth exceed their own ability to fund it.

Reference:

Belle Beth Cooper; “The 13 Biggest Failures from Successful Entrepreneurs and What They’ve Learned from them” September 5^th, 2013.