BY: RABIA RASHEED & WAJIHA HAQ

FAMOUS FAILURES

HAVE YOU EVER FAILED?

The tale of entrepreneurship doesn't always have a happy ending, and raising money isn't always the answer.

REASONS OF FAILURE  No Viable Market What if we launched a business and nobody showed up?

NO VIABLE MARKET  Market Research  Talk to Your Customers  Identifying Customer Needs

POOR EXECUTION Evaluation of Your Skills Choosing Correct Opportunities Professional Team & Manager Discipline is Important

 Too Much Leverage Give me a lever long enough and I will bankrupt my company

TOO MUCH LEVERAGE  Delay Making Investments  Delay Taking on Fixed Obligations

 Undercapitalizing the Business  Lack of Competitive Advantages Never bring a knife to a gunfight!

UNDERCAPITALIZE THE BUSINESS  Don’t Underestimate the Time and Capital to Reach Breakeven

LACK OF COMPETITIVE ADVANTAGE  Good Location  Proprietary Technology  Cost Structure that cannot be Replicated  Create Additional Barriers with the Passage of Time

 Competing Head-to- Head with Industry Leaders Better sharpen those elbows...

COMPETING WITH INDUSTRY LEADERS  Sharpen Your 4Ps’ Strategies  Develop a Professional Team

 Picking a Niche That is too Small Don't be a market of one!

PICKING A NICHE THAT IS TOO SMALL  Specialize in Niche Market  Niche Should Support Your Business  Customers Should Not be Expensive

 Breakup of the Founding Team Breaking up is hard on you -- and your company.

BREAKUP OF THE FOUNDING TEAM  Handle Disagreements Carefully  Structure Agreements  Treat Every Employee Fairly  Respect Everyone’s Point of View and Interest

 Poor Pricing Strategy The price is right?

POOR PRICING STRATEGY  Focus on Pricing at Earliest Stages of Business Plan  Pricing Based on Cost Structure  Pricing Based on Product’s Perceived Market Value

 Growing too Fast What goes up...

GROWING TOO FAST  Move Progressively  Finance Fixed Assets with Internal Cash Flows  Focus on Cash Flow Rather Than Profitability

SOME OTHERS REPORT…  Loss of revenue  Poor business models  Management/operational issues  Lack of capital  Credit/debt issues

 Lack of planning  Trying to make a hobby into a business  Inexperience in managing a small business  Poor record keeping and financial controls  There is a difference in oppurtunity and new idea  Dependence too much on a single client

 Poor selling techniques  Inferior quality customer service