Why do most businesses fail? Not enough money, bad idea, too much competition, not enough experience, etc?

Josh Beck ‏ @JT_Beck: Why do most businesses fail? Not enough money, bad idea, too much competition, not enough experience, etc?

ANSWER:

The heart of a business is the customer. The blood of a business is money. The muscles in the business are the employees. The oxygen in the business is the communication between the employees. Blood comes from the heart to the muscles and delivers oxygen to the muscles.

If there is a blockage of blood (the customer is faltering) then you have to stop the blockage immediately or you have a heart attack. Your employees fight, the money slows or doesn’t get paid on time, the business falters, and the customers leave, and you die.

So this means to constantly check your customers. Do whatever it takes. Check the arteries (the big customers), the veins, the electricity between the customers and the product. Always ask your customer what they need. Take, as an example, Borders Books. They were too late to the ebook game. They were actually too late to the internet. They even had Amazon host their online bookstore for awhile. Bad Borders! The customers wanted Internet and ebooks and ebook-readers.

So Borders, once the best bookstore on the planet, died.

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