Based on the recent research by Small Biz Trends 90% of The New Startups Fail
We commonly read the following reasons for most of the problems of why startups or organizations fail
- Incompetence: Little Managerial Experience, Poor Leadership Skills, Inability to Manage Scale, Limited Operational Expertise
- Market: Market Fit, Low Market Demand, Not Enough Market Acceptance, Lack of Innovation, Poor Product Demand
- Competition: Price Competition, Disruption by Competitors
- Capital or Finance: Shortage of Funds, Low ROI, No Stable Revenue, Poor Revenue Model, No access to capital or investment
- Team or Founders: Ego problems between founders, Personal Problems of Founders, Lack of effective team etc.
- External or Regulatory: Change in Govt. Regulations and Norms,
The reasons are endless and most of the times the same old wine is served in different new bottles. We only end up reading synonyms of some of the core problems. They fail as they don’t do things enough to be successful.
While all of these reasons are under our Circle of Concern, only some of them are within the Circle of Influence Control.
- Does Organization Culture holders the key to Success?
- Can you build an Organisational Culture which will shield your organization from some of these problems?
Being Proactive and building an effective organizational culture will help you expand your Circle of Influence or Control. Hence, provides the ability to combat failure.
Proactive people focus on issues within their circle of influence. They work on things they can do something about. The nature of their energy in doing this is positive, enlarging and magnifying. They increase their Circle of Influence or Control.The Seven Habits of Highly Effective People by Stephen R. Covey, Simon & Schuster 1992.
Stephen Covey defines proactive as, “being responsible for our own lives…..our behavior is a function of our decisions, not our conditions.”