I am writing this article today, after a conversation I recently had with an internet entrepreneur I met. This entrepreneur actually succeeded in selling one of her internet ventures to a big company for a lot of money about 10 years ago. But, since then, however hard she tried, she could not replicate her first success.
About two years ago, she launched a new venture , she managed to get investors’ money, she went out publicly in a vast media campaign including special features in prime-time television. It was looking great,there was a lot of money behind venture to drive it forward, but, it failed, and not just failed, it failed miserably.
The investors were furious,the small start up company with its employees had to shut its’ doors, the website got blocked and many users who started using the product were very disappointed for the time and effort wasted. Following this disappointing failure, she tried two more smaller ventures that failed as well.
And then I was asking myself, what was the thing that made the difference between the very successful venture which was sold and is still active, to the other ones which failed? initially, I thought maybe it had to do with timing? 10 years ago the market was not very saturated as it is now. But then I ruled this out, because we still see good internet successes very day. Then, I thought maybe it was a better product? but, I realized it had nothing to do with the product, because the other ventures that failed seemed like very good products as well. And then I thought , maybe luck? but , I think that you will agree with me, if you have been running your business for a few years already, you’d know by now, that luck has little to do with success, it is hard work and determination that eventually make it work .
Then it hit me, I knew exactly what made the difference between the enormous success of the first venture to the enormous failure of the ones that succeeded it.
When she set up her first event planning business, it was after she had worked in the field for several years. She knew the business inside out, she knew what the customers wanted and needed. She was confident about the business success because she knew what she was talking about. After all, she started out as an event planner herself. She believed in the business and believed in giving genuine value to customers around the world.
After she sold her first business, she was eager to replicate her first success, she was hungry to succeed, but she never really cared about the new products, all she wanted was to make a “killing” and get out quickly. The other ventures were related to the entertainment industry which she knew very little about. She never studied the market inside out. She never had any experience in this field and she started “big” instead of “small” . She was after the money and not the business. Her motivation changed from giving value to customers, to making a quick ‘Exit’. The biggest problem in my opinion was that she never knew her business inside out. The way she chose the new ventures was after she searched the internet, thought that she found “the next big thing” and went for it forcefully. Without having any real substance behind it, her business never had a chance to grow roots.
I think every entrepreneur need to ask himself or herself these questions:
Do I believe in my product?
Do I know my business inside out?
What is my true motivation in my business?
Added by iQDesk Ltd.