While 400,000 new businesses start every year, 470,000 small business will shut their doors in the same period. That’s a net loss of 70,000 businesses a year. Yet, the US has one of the highest rates of entrepreneurship in the world, and has the highest confidence rankings by a decent margin. Learn how your startup can find success by avoiding these common downfalls: http://www.brianhonigman.com/why-startups-fail/

1. WHY MOST
STARTUPS FAIL
HOWTO AVOID
THE SAME FATE
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Based on an article that originally appeared on my site.

2. HI!
I’m Brian Honigman
I’m a Marketing Consultant,
Speaker and Writer.

3. Firstthe
Bad
News

4. Each Year 70k
More Small
Businesses Fail
Than Succeed
470K
400K

5. It’s even worse in tech.
90%
Of Tech Startups Fail
Within Just:
2months

6. “If you can just
avoid DYING,
you get RICH”
–Paul Graham, founder Y Combinator

7. THREE QUESTIONS TO ASK TO AVOID DYING
HOW?
WHY? WHAT?

8. WHY?
HOW?
WHAT?
QUESTIONS BASED ON THE
GOLDEN CIRCLE

9. TED TALK by SIMON SINEK
START WITH WHY
before continuing watch the
click here>>

10. WHY?
Define your reason for existing.

11. 21%
Of small businesses started in 2013
were Necessity-Driven*
i.e. started because the owner had no other way to make
money (according to study from Babson College)

12. This means the other 80% were
started because the founder saw
an opportunity.

13. “
“
Opportunity—driven companies should
have a better reason for existing than to:
Make Money
Only necessity-driven startups can be saying that and
have an excuse for being so selfish.

14. “PEOPLE DON’T BUY
WHATYOU DO,THEY
BUY WHYYOU DO IT”

15. HOW?
Outline your approach to solving
problems.

16. According to the Small Business Administration, one of the
top 10 reasons small businesses fail is because they lack a
process for something as basic as inventory management.

17. Once you know why your business exists,
you need to figure out how to actually
achieve these goals.

18. To build processes that make sense for
your business let your:
HOW?
WHY? inform your

19. Example: Zappos.com

20. They let their company philosophy dictate
the way they handled a business process
like inventory management.

21. “We run our warehouse 24/7, which actually isn’t
the most efficient way to run a warehouse…but
we’re not trying to maximize for picking efficiency.
We’re trying to maximize the customer experience,
which in the e-commerce business is defined in
part by getting orders out to our customers as
quickly as possible.”
–Zappos CEO Tony Hsieh
on his reason for stopping drop shipping

22. WHAT?
Identify what is working so you can
keep on doing that.

23. Once your company has success, you will
want to replicate what worked
replicate
replicate
replicate

24. But you can never replicate success if you don’t
understand what made you successful.

25. Replicate your successes by understanding the
DNA of your organization.

26. Replicate your successes by understanding the
DNA of your organization.
WHY?
A.K.A. the

27. WHY?
HOW?
WHAT?
START YOUR BUSINESS WITH WHY
TO GUIDE YOUR
DECISIONS

28. One Last Thing
To Help Your Business
Avoid Dying

29. “Startups fail because they can’t find
product/market fit and they give up
before finding it. How do you avoid
this downfall?
Never give up.
–James Gross co-founder

30. THANKS FOR READING!
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