When you look at the stats for first-time business failure, they are truly startling research shows that anywhere from 50-95 percent of start-ups fail within their first 18 months. Probably more startling are some of the reasons for failure.

According to a study by CBS Insights, 95 percent of start-ups fail, and an amazing 42 percent of them failed because there is no market for the product or services, that they have created.

That's right they have created something that nobody is prepared to buy.

When you create a product that no one wants, it doesn't matter how good the quality is, or what the price point is, you are not going to achieve any sales or have any real business success.

It's great that you think your product is going to be the next big thing, but if you're alone in this thinking then you need to think again, or you will fail, and that could be very costly.

A little bit or market research could be all that you need to do to save yourself from this failure.

Test the waters before you go into full blown production, and if there is no demand, you know that this is not something you should invest in further.

Many experts in the on-line program space will recommend that you look to sell your programs before you create them. Then, if it sells, you know you have a potential winner, and you can start to get into full production mode. If it doesn't, you have just saved yourself a lot of time, energy, and potentially costly investment.

People don't buy products they buy solutions.

So look to create solutions, not products or services.

The more people that share that problem, the bigger your potential market will be.

Uber came about because of Garret Camp trying to solve a problem that he had. On a snowy Paris evening in 2008, Travis Kalanick and Garrett Camp had trouble hailing a cab, and they also knew that this was a problem that many people share worldwide.

AirBnB started because two people couldn't afford to pay their rent, they looked to find a solution by renting out the rest of their apartment. Again they knew they were not alone in having this problem.

If you're thinking about starting a business, then make sure you focus on meeting a need, or solving a problem, and not just creating a fancy product or service. Also, do some market research. Check out whether anyone will be interested in buy what you're offering before you start to invest too much of your time and money.

If you don't then you're setting yourself to not only be part of 95 percent of the start-ups that fail, but also one that fails for the dumbest of reasons.

Published on: Jun 5, 2017