let's talk about why most businesses
fail there's three reasons that I've
seen with my consultant clients and my
past and I want to break down what those
are so that you can avoid them with your
business first of all who am i I'm Alex
Berman I've generated over ten million
dollars in sales for our companies and
I'm a serial entrepreneur currently
running multiple businesses including X27
We’re we help company meet
billion dollar brands and email 10k
which is the definitive business course
on how to start and grow your business
so let's talk about why most businesses
fail number one is they're selling
something nobody wants I actually had a
business fail earlier this year called
Albert Halsey where we were selling
vintage Las Vegas merch and high-end
Vegas souvenirs and that business failed
because we weren't generating any sales
compare that to whoa hello which was our
other apparel company that we started
earlier this year that did generate four
figures before we pivoted it to Albert
how Z and that design company worked
because it was high-end designs that
looked cool that was it we were just
trying to make things that looked cool
and that resonated with people but
people didn't want high-end Vegas merch
so that business failed and it happens
more often than people like to admit
especially when it comes to mobile apps
or interesting business ideas a lot of
people want to start something
completely new something that's never
been seen before so they come up with a
great business concept like uber for dog
walkers or something like that
that sounds original and sounds new when
in most cases the world doesn't need an
uber for dog walkers but it does need a
dog walking service carwashes just
literally anything that you've seen as a
business already a restaurant you're
like it needs stuff legal services so
that has been done a million times
before
the reason why those type of businesses
are done so often is because they are
needed they can be supported in the
market and sometimes when we try to be
original as entrepreneurs we'll come up
with something that isn't needed as much
as some basic thing is needed for
instance x27 one of our most successful
businesses sells marketing services very
simple business
there are online courses after online
courses talking about how to start a
marketing services business you might
think that the niche is oversaturated
and yet here we are making a healthy
living with our services business our
business course email 10k talks about
how to start a company it's the greatest
course on how to start a company and we
work really hard to make it amazing but
it's also one business course in a
market of hundreds and yet here we are
succeeding and making a living with our
business course your business does not
have to be original to succeed in fact
it will do better if people can easily
see what type of business you are so
that's number one why most businesses
fail selling something nobody wants this
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2 is the product quality or the service
quality breaks down at scale and has
never repaired when we first started
scaling x27 originally it was me and my
co-founder Robert who's still my
co-founder still here amazing guy and it
was just us doing the work I would sell
the reviews and then Robert would
implement the reviews we used to do
marketing reviews which is going through
the marketing of other companies and
they would pay us for these insights so
we would work together on that as a team
of two when we hired our first people
what we found was while we used to have
a hundred percent client success meaning
we would do some work and the client
would be super psyched like they'd be in
they'd be buying more they would
recommend their friends as soon as we
started adding other people to the team
that dried up clients weren't as
impressed the quality of the work went
down and one reason why businesses fail
is when they get to that inevitable
because it does happen with every
business they either give up on hiring
employees and start doing the work
themselves only which leads to a bunch
of stress and long-term will lead to a
freelancer to shut their business down
or to ignore the quality problems and
allow revenue to dip allow customer
satisfaction to go down which eventually
leads to less customers and eventually
kills the business the right thing to do
is accept that your product quality is
going to go down and work hard to build
business systems to keep their quality
up and we've done some other videos on
business systems if you want to check
those out as well so that's the second
reason and the third reason why most
businesses fail is BS between
co-founders meaning founder misalignment
like one guy doesn't want to be in the
business anymore so he leaves or one
guy's not doing the work so the
co-founders fight or there's not enough
communication the business wants to go
in different ways basically what this
means is you can do everything right you
can have a product people want to buy
you can have a scalable service that is
consistent in quality every time but if
you and your co-founders don't get along
eventually that partnerships gonna break
up I had a partnership dissolve earlier
this year with the first online course
we ever launched I launched that with a
strategic partner and we just didn't
vibe well so that broke apart and
there's nothing you can do when that
happens
financially the course was doing well
and it could have been a great business
but because the co-founders didn't get
along that didn't grow so we found
different people to be on the team and
we launched a different product that's
that it's BS between co-founders is bad
and kills businesses what I found works
with my co-founders is a weekly call
where we're talking even for just 30
minutes a week seeing eye-to-eye ideally
it's a video call where you can see each
other and talking like humans a lot of
BS between not just co-founders but
between people comes when we stop seeing
the other person as a person and we
start seeing them as a caricature or a
villain or some other thing that's not a
real complete person so I always try to
assume that if somebody's making a
mistake it's not because they're stupid
or they are lazy it's because they don't
know they're making the mistake and
approach it from that point of view so
those are the reasons why most
businesses fail look out for those and
succeed
that's selling something nobody wants
what you can fix by getting customer
feedback product quality breaking down
its scale which you can fix by accepting
that and hiring higher quality people
and number three is BS between
co-founders which you can fix with
weekly one-on-ones and making sure
you're only getting into business with
people that you like and respect if you
want more detail on how to start and
grow your business by working with
clients that can afford you including
billion dollar brands check out email
10k.com it’s the definite course on
how to do that if you want more business
content on YouTube subscribe to this
channel we do content three times a week
all about sales entrepreneurship how to
start a business etc and leave a comment
have you had a business failure let me
know what happened down in the comments
below would love to get a conversation
going thanks for watching I'm Alex
Berman