It may be a little academic… but here is an interesting article prepared by The Impact Group about understanding the disappearance of early-stage and start-up companies. They focus on companies with a large emphasis on research and development (R&D) and the study found that the major contributor to failure and disappearance was related to customers and sales.
There are some good points in there for any start-up business, including:
- Sales are of vital importance. If you are investing heavily in R&D or product development, you need to have a cash source to see you through. This could be an investor, or another aspect of your business that is generating plenty of profit.
- Don’t forget your customer. Ask for their insight and advice. What do they want? You are developing this product or service for them – why wouldn’t you ask them what they think?
- Never underestimate the amount of time and money required for R&D. Whatever you think it will cost, add at least 50% on to that (if not more!)
- Your team is the key to your success. Hire excellent people who are great at what they do.
Read the full article here: Starts ups – why they fail