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Simple Reasons Why Some Businesses Failed in 2010

Simple Reasons Why Some Businesses Failed in 2010


There is a plethora of information out there from former CEO's and case studies about the many reasons why businesses fail or how to avoid failure of your small business, bad color and design is not usually one of the reasons given, but with more and more businesses existing exclusively online, color, design, and UX/UI is an issue for businesses today. It's no longer enough just to have a website. Your website is directly connected to the success of your business, and it needs to be treated as such with frequent updates, quick reactions to changing markets and, especially, the changing demands of your customers.

Today, we look at the color, design of a few companies that failed last year, and the reasons why. These highlighted companies were featured in the The New York Times article, How Six Companies Failed to Survive 2010. While many of the reasons they failed span beyond design an usability it's always a good idea to keep yourself familiar with all the pitfalls of running a business. You can read the full explanations and find out more about each company in the original article on nytimes.com.


Wesabe.com - Mr. Hedlund acknowledges, Mint had a better name and better design and was easier to use.“We wanted to help people,” he said, “but it was too much work to get that help.” - nytimes.com

Wesabe.com


Gotham Concierge - Tied to financial market, luxury service.

Gotham_Concierge


iparents.com - Focused too much on enhanced functionality and not enough on marketing and getting new users.

"Too much time and money were spent on enhanced functionality, like text-alert reminders about appointments and the ability to turn family photos into refrigerator magnets." - nytimes.com

iParents


Large Format Digital - A questionable investment + mortgage crisis.

Large_Format_Digital


Petite Palate - Investors were skittish after the market crash + unwilling to make changes to their product, which would have increased the likelihood stores would have carried it.

Petite_Palate

Classic business fails include poor management, lack of planning, insufficient capital,... but these lists seem to have trouble keeping up with the changing times. Here are few things to consider beyond the basic list:

- Be able to React to Changes, Quickly.

- Don't Compete, Collaborate. - Businessweek

- Solve a Unique Problem. - 7 Reasons My First Business Failed by Neil Patel (Crazy Egg and KISSmetrics)

- Listen to Your Customers.

What are others ways you can avoid failure?


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4 Comments
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Team

mollybermea

I also think businesses need to launch out of the box with iPhone/iPad app's too. Anymore it just seems to be a critical step in getting out there. But some businesses also get too complex with this idea and again, is an added distraction that leads to the overall failure.

stephanbarrett

Molly, you're right, mobile is critical now. Many leaders in the internet space say if you're not thinking mobile right now, you're toast!

mollybermea wrote:
I also think businesses need to launch out of the box with iPhone/iPad app's too. Anymore it just seems to be a critical step in getting out there. But some businesses also get too complex with this idea and again, is an added distraction that leads to the overall failure.
Team

mollybermea

it just seem's to me as the FIRST thing you think of! (okay not literally, but I'm a VERY big fan of mobile!).
stephanbarrett wrote:
Molly, you're right, mobile is critical now. Many leaders in the internet space say if you're not thinking mobile right now, you're toast!

mollybermea wrote:
I also think businesses need to launch out of the box with iPhone/iPad app's too. Anymore it just seems to be a critical step in getting out there. But some businesses also get too complex with this idea and again, is an added distraction that leads to the overall failure.

Funky Diva

It depends on the type of business you have on whether or not a mobile app is even needed. The mind set that you need to do X,Y,and Z because Business A did that and was successful is why so many businesses fail. Every business is different, with different needs and problems. When you read the New York Times story, you see that the businesses listed failed for different reasons. One size doesn't fit all.

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