Death Spirals and How to Avoid Them
5 Traps and How to Get Ahead of Them
Here are some traps or causes for concern.
They usually appear once you've hit the market and you begin to see how your brand and business perform in the real world.
I've expanded on the first point since I've seen this from many businesses and it is relatively easy to correct.
– COMMUNICATIONS –
1. Your product is not communicating its relevancy to its intended target audience - your brand doesn't communicate quite like you do.
You've been living with it and explaining it for so long now that you've developed all sorts of shortcuts and short hand language to define and explain the idea.
Now it's out there and people are not picking up on it.
You need to communicate in ways that allow them to see and understand.
You need better language and quicker elevator speeches.
Your sales channels need to mimic them and serve as reverberators of the message.
– PIRATING –
2. You realize a competitor is copying the core elements of your branding - you see them using your colors, your words, your market approach, even your type font
– THE OVER-PROMISE –
3. You are over-promising and under-delivering to your investors - selling takes time, and it takes persistence and fortitude to turn a "no" to a "yes"
– (A LACK OF) PREPARATION –
4. You didn't prepare your life for this startup journey - your business is a life venture and this means it can and will define and disrupt your entire life
– A RUSH TO SCALE –
5. You're scaling up too fast before hitting the basic business milestones - using precious funds too early and on the wrong things like expansion can kill your business.
To discuss more ways of avoiding disaster, contact Gerry now.
There are so many productive ways to work with Gerry.
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