Emergic: Rajesh Jain's Blog

Emergic: Rajesh Jain's Blog header image 2

One Reason Why Companies Fail

March 10th, 2010 · 19 Comments

I was thinking about this the other day, as I was chatting to a friend about my experiences as an entrepreneur and investing in early-stage companies.

I mentioned to him that one of the reasons companies fail (and I have also gone through my share of failures) is that we do not reset starting assumptions against the market realities. Let me explain.

We start off with some ideas, and assumptions about the market. Once we take the product out into the market, we get feedback – about customers’ expectations and market size. It is at that time that we need to think about some course alteration – in case there is a mismatch. Many times, we don’t do that – working under the principle that our efforts will accelerate the market’s response towards our product. That rarely happens. What follows is disappointment.

It is never easy changing one’s assumptions quickly, especially when one has been thinking about them for a long time. But they should be exactly that – just starting assumptions.

Tags: Uncategorized

19 responses so far ↓

  • 1 Rama Vadakattu // Mar 10, 2010 at 12:22 pm

    Yeah the same thing steve blank calls (and popularly know as) it as customer development. Get of out of your building and validate your hypothesis (these are just your opinions) with your customers.
    Most companies are failing due to lack of customer not due to lack of technology.

    more information at the below link
    http://steveblank.com/2009/09/17/the-path-of-warriors-and-winners/

    audio:
    http://ecorner.stanford.edu/authorMaterialInfo.html?mid=2048

  • 2 kasi // Mar 10, 2010 at 12:36 pm

    That is more true with Technoprenuers.

    Some people even argue that we stick to our Original Business Plan… I can’t understand that.

    If there is no Business then what we do with the Original and the Plan?

    People are not ready to accept that their assumptions about the market is wrong…and start quoting companies which waited …look at electric cars…it took them 20-years…look at cellphone market it took them 10-years bla..bla..bla..

    Kasi

  • 3 Delphin Palace // Oct 6, 2010 at 10:02 pm

    Agree with Kasi, the plan is the backbone to a company. If it has holes, stop it.

  • 4 안전놀이터 // Nov 17, 2018 at 3:33 pm

    Thanks for sharing the post.. parents are worlds best person in each lives of individual..they need or must succeed to sustain needs of the family.

  • 5 Naveed // Aug 26, 2019 at 9:26 pm

    This type of message always inspiring and I prefer to read quality content, so happy to find good place to many here in the post, the writing is just great, thanks for the post.
    Banderas para eventos

  • 6 vex 3 // Aug 30, 2019 at 3:49 pm

    Thanks for the information your post brings. I see the novelty in your text, I will share it for everyone to read. I look forward to reading more articles from you.

  • 7 Naveed // Sep 3, 2019 at 9:28 pm

    i am always looking for some free stuffs over the internet. there are also some companies which gives free samples.
    Instalikesfast.com

  • 8 Naveed // Sep 8, 2019 at 5:27 pm

    It was a very good post indeed. I thoroughly enjoyed reading it in my lunch time. Will surely come and visit this blog more often. Thanks for sharing.
    hampton bay

  • 9 Naveed // Sep 23, 2019 at 8:57 pm

    Thanks a lot for sharing us about this update. Hope you will not get tired on making posts as informative as this.
    pain in back massage

  • 10 Naveed // Sep 25, 2019 at 4:49 pm

    This is really a nice and informative, containing all information and also has a great impact on the new technology. Thanks for sharing it
    posters

  • 11 Naveed // Oct 6, 2019 at 3:07 pm

    Thanks for providing recent updates regarding the concern, I look forward to read more.
    Limo Service

  • 12 asimseo // Oct 8, 2019 at 7:08 pm

    Super-Duper site! I am Loving it!! Will come back again, Im taking your feed also, Thanks.
    소액결제현금화

  • 13 Naveed // Oct 12, 2019 at 9:43 pm

    I am happy to find this post Very useful for me, as it contains lot of information. I Always prefer to read The Quality and glad I found this thing in you post. Thanks
    progentra pills

  • 14 Naveed // Oct 15, 2019 at 8:03 pm

    Positive site, where did u come up with the information on this posting? I’m pleased I discovered it though, ill be checking back soon to find out what additional posts you include.
    메이저사이트

  • 15 asimseo // Oct 20, 2019 at 11:32 am

    Hey There. I found your blog using msn. This is a very well written article. I’ll be sure to bookmark it and come back to read more of your useful info. Thanks for the post. I’ll definitely return.
    khóa học makeup cá nhân

  • 16 asimseo // Oct 24, 2019 at 10:07 pm

    Great Information sharing .. I am very happy to read this article .. thanks for giving us go through info.Fantastic nice. I appreciate this post.
    tissu pas cher

  • 17 asimseo // Oct 27, 2019 at 4:10 pm

    Keep up the good work , I read few posts on this web site and I conceive that your blog is very interesting and has sets of fantastic information.
    international crate shipping company

  • 18 Naveedmughal // Dec 1, 2019 at 8:51 pm

    Thanks you very much for sharing these links. Will definitely check this out..
    contratar detectives privados

  • 19 mejores detectives de infidelidad // Dec 6, 2019 at 6:50 pm

    These are some great tools that i definitely use for SEO work. This is a great list to use in the future.. precio detectives de infidelidades

Leave a Comment