Why Some Business Fail

And Why Others Succeed

Photo by Austin Distel on Unsplash

competition and scalability.

You see most people don’t like talking about competition but this subject is crucial for your success as a startup.

product differentiation, customer acquisition and resources (i.e., capital).

Let me explain each one of them:

Product differentiation

When there is no product differentiation, it means that your competitors can copy your product or service with very little effort; therefore making it easier for them to enter the market and compete with you.

Customer acquisition

This is closely related to product differentiation; however it focuses on how easy it is for customers to switch from one competitor to another; in other words how many customers are lost when a competitor enters the market?

Resources (i.e., capital)

This is the most important factor in my opinion; it is directly related to both product differentiation and customer acquisition. When you don’t have enough resources, i.e., capital, it becomes impossible for your business to flourish; you can’t compete with larger companies that have the resources to invest in marketing strategies, product development and/or research and development.

Founder of Cudy Technologies (www.cudy.co), a full-stack EdTech startup helping teachers and students teach and learn better. I am also a mentor and investor.