Skip to content There are four major factors that account for why businesses perform poorly, namely:
- Poor product
- Poor business model
- Poor marketing
- Weak structure
All the struggles any business is currently experiencing or will experience in the future are traceable to one or more of these four factors. Being well informed about them will significantly help you to be better prepared to steer your business affairs towards profitability. In this article, I will address one of the four – poor product.
Poor Product
When you are thinking of a new business idea to launch or a new product to develop, the most important factor to consider is the commercial viability of the product. Think of it this way, what is the essence of investing so much capital, time, and effort to offer a product – an app, equipment, an invention, a commodity, a service, or any solution that customers won’t patronise?
30,000 new products are introduced each year with 95% of them failing according to Clayton Christensen, Harvard Business School professor. Yet the fortune of any business is tied to the fortune of its products in the market. When the products do well in the market the business will do well. Conversely, when the products struggle or fail, the business struggles or fails too in the long run.
Most products fail because they lack product-market fit – the degree to which a product satisfies a strong market demand. The products perform poorly because they fail to address a real need in the market or they misjudge customer demand. Making a product that doesn’t satisfy the customer’s needs is a recipe for business failure.
In running a business, just as with any endeavour, you won’t be rewarded for the efforts you are making but for the results you are getting. It doesn’t matter much how much time, effort and money you pour into bringing a product to the market, if it doesn’t satisfy customer needs it won’t sell.
It also doesn’t matter how much you like your product or how much your team and the people around you speak nicely about it, unless the market receives it well it will fail.
It doesn’t matter what the investors think about the product, it is what customers want that counts. It is customers, not investors that ultimately determine the success of a business.
The axiom “the customer is king” underscores the paramount importance of prioritizing customer satisfaction in business endeavours. Indeed, the customer’s opinion holds utmost significance, serving as the primary determinant of success. Customer satisfaction stands as the pinnacle, unlocking the pathway to sustainable business prosperity. It serves as the ultimate differentiator, distinguishing amateurs from professionals and delineating true mastery in the competitive landscape of the business world.
When a product you offer – an app, equipment, an invention, a commodity, a service, or any solution is not solving real-life problems, customers won’t patronise it. The reason is not far-fetched. People don’t like parting with their hard-earned money. They part with it usually only when they feel they will get value in return for spending it.
People won’t buy from you just because they are your friends, neighbours, or family. They will only buy from you if your product is solving tangible problems for them. Money flows in the direction of value. Your overarching priority as an entrepreneur should not be to build a product but a product that customers want and in the way they want it.
I’m here to walk your success journey with you. Subscribe to my newsletter for regular nuggets or check out other empowering articles on my blog to help in that journey. My latest book is Business Accelerators, a primer on launching and growing a profitable business.
Written by : Ayo Adebamowo
About the Facilitator – Ayo Adebamowo Ayo Adebamowo is an Author, Speaker and Tech Entrepreneur. He is the founder of MyMedicalBank, a health technology company promoting digital access to healthcare through creating innovative digital solutions.
A Nigerian-British national, Ayo has been named as one of the 70 Most Outstanding Healthcare Professionals in the United Kingdom.
Having started and run various businesses himself in healthcare, technology, agriculture and publishing, Ayo very much understands from a practical point of view the pains, struggles and mistakes aspiring and established business owners often make that delay their success. He therefore brings his wealth of experience coupled with years of experience and research to help other entrepreneurs succeed in their journey.
