1.2. Did You Ask the Customer?

You have definitely heard of them. You have definitely seen them on TV. The most impressive and iconic companies that always seem to be fully armed and better prepared than the rest of the world. We buy their products, use their services, their stories are everywhere. We admire and feel jealous of them for their success and prosperity. But was it always like that? What is their secret of surviving and still staying afloat?

Bitter Truth

Pst! Come closer. What you need to know is that everybody fails. No matter how good you are or how hard you try, at some point you will not achieve the desired result. Hundreds of startups are closing every day, tens of thousands of products fail and quickly fly out of the market. Even large and inspiring companies, such as Microsoft, Google, Yandex, etc., that have dozens of billions of dollars and dozens of thousands of professional employees, they all had their good days and their bad days. Why does that happen and how can we prevent that from happening to us?

Reasons for Failure

A well-known market intelligence platform analysed more than 100 stories of failures and revealed that usually about 70% of startups vanish in the jungle of the market within the first two years of existence. After spending an uncountable number of hours, it was possible to identify 20 the most frequently mentioned reasons why startups fail. What is interesting is that all the reasons are very different but are still interrelated. Interested? Then keep reading!

Cards on the Table

The first and most popular reason of failure, mentioned in 42% of business stories, is no market need. Other reasons, different but still closely related, are being surpassed by competitors (19%), poor marketing (14%), mistiming of the product (13%) or even ignorance of customers (14%). The last matter of why businesses didn’t succeed was due to their failure to pivot (7%). Accordingly, why were entrepreneurs out-competed? Why was the timing wrong? Why did they need to change their direction of running business and handling things? Because all roads lead to Rome — blinded by financial perspectives and hopes in wealth, it became obvious that the products developed or services provided weren’t actually meeting the demands and wants of the customers; companies created things that weren’t necessary and that nobody needed. Entrepreneurs did not consult with or ask advice of the future users, they did not show the concepts or versions of the products (MVP), nor did they provide an opportunity to test and try out the product beforehand. When the product was finally created entrepreneurs acted all shocked that nobody needed it and that businesses failed.

How Could That Be Different?

Was it possible to avoid frustration? Was it possible to survive and make your failure less painful? You’d be surprised. Yes! As a matter of fact, all companies, enterprises, corporations and businesses had to and still need to do only one thing — ask the customer. Whether you’re a fresh product developer or an experienced business person, you know that your main goal is not meeting your own greedy needs, but satisfying the wants and demands of consumers. Accordingly, if you want to survive and stay afloat on the competitive market, it is necessary to conduct interviews, make phone calls, write emails or letters, talk to and get to know what customers need on a permanent basis! Some are hesitant to ask the customer because of the fear to hear a refusal or objection. Don’t be! It’s much better to hear an objection and be able to work with that rather than try and read one’s thoughts and silent dissatisfactions. Besides, customers are one of the most, if not the most, important element of any business. If there are no customers, there is no business. If your customers are happy, that makes you financially happy too.

Final Word

Don’t be afraid of failing. Fail is the only way to succeed. Be afraid of not learning from other’s mistakes and going down the road of failure again and again. And besides, if there is a possibility to reduce the number of your own fiascoes by getting acquainted with those experienced by other companies or entrepreneurs, then why not do that? Therefore, read, learn, analyse, develop, test, but most importantly ask your customers.