[Part 8] Learn not to fail. The two biggest reasons why projects fail.

Hello. This is Kamiyama.

Today, I will tell you about the failure patterns when starting any side business or venture.
Even though I say failure patterns, there are actually only two.

By the way, even if you call it a failure, failing is a good thing.
Rather, failures from trying are not failures as long as you continue.
It means you learned the reasons why it didn't work, and we don't call that a failure.

Failure here means the project completely came to a halt for some reason.
As long as you don't commit the failure of stopping, everything else will work out.

Until now, I have supported many projects.
And I have seen many failures and successes.

But what I suddenly realize is that the failure patterns are similar every time.
Actually, if you just overcome two certain walls, there are no failures.

Of course, if you subdivide them finely, there are many.

However, the underlying concept is the same.
If you grasp the key points, you won't fail.

Are there any people starting a side business or entrepreneurship from now on?
It's a very simple story, so please keep it in mind.

Failure Pattern 1: Stopping the project in the middle for some reason.

Oh, this is truly the case.
Stopping is the biggest cause of failure.

Those who thought, 'That's obvious,' you shouldn't underestimate it.
Projects started by individuals, especially, usually stop.

The problem is why projects stop.
And this reason is an indescribably vague mess.

• Even before releasing it to the world, they changed their mind.
• Somewhere along the way, for some reason, they got busy and quit.
• Because results weren't coming quickly, they got bored.
• There was no particular reason, but it just stopped.

It's like this.

When you ask 'What happened to that project?', they say 'It's stopped' or something.
And when you ask 'Why is it stopped?', they say 'I'm just kind of busy' or something.
Ultimately, they just fade out.

80% of projects that start end this way.
If you count side-hustle projects, probably 90% end for this reason.
80% to 90% quit what they started themselves.
Seriously, what does that mean?
Don't they intend to earn money?

Actually, if they just keep going, things will work out.
Most of them, through trial and error, somehow take shape as a business.
At the very least, they become some kind of income source or asset.

Despite that, the majority give up like children.
Especially, younger people tend to show this sign more.
Conversely, it's an opportunity for young people.
Because just by continuing, you can outpace others.
Please continue, seriously.

Failure Pattern 2: Incurring excessive costs that are beyond your means.

There are many, aren't there, people who start projects with exorbitant expenses.
If costs are anticipated from the start, go talk to investors or VCs.
If you're doing it with your own capital, why did you think of undertaking something so costly?

Rather, in many cases, people fail to anticipate costs from the beginning.
For some reason, they suddenly rent an office, try to start a retail business, or think about opening a store.

You shouldn't incur too many large costs at the initial starting point.
You shouldn't assume you'll keep increasing fixed costs.
That's what causes businesses to collapse.

For example, even Elon Musk's Tesla started by developing software.
Something like a program running in the car, operable via a touch panel.
Although they have factories now, they initially sold software.

If you're starting as an individual, even starting with software is difficult.
You should start from an even smaller point.

As much as possible, it's standard practice to start with a business model that has low initial costs.
Once it takes shape to some extent, you can then incur fixed costs.
But if you recklessly incur costs from the very beginning.
That kind of thing is bound to fail, isn't it?

Initially, let's expand a business model with low costs and no fixed expenses.
Once that business is stable, you can open a store or rent an office.
Now there's the internet, and that makes it possible.

You don't have to keep starting from a high-risk point like in the past.
And yet, why do people go out of their way to do that?
Even I, at first, learned and offered website creation with low direct costs.
Having made some profit from that, I also started businesses.

If you are considering a plan that involves fixed costs.
If you are a beginner in business management, it will definitely be tough, so it's better to hold back.
Even if it costs money initially, you won't fail as long as fixed costs are not high.

Anyway, you won't fail just by not falling into the two pitfalls.

Neither of them should be that difficult.
If you continue patiently and have a bit of thoughtfulness, you should be able to continue.
But when it comes to actually taking the plunge yourself, everyone ends up doing it, don't they?
Even while saying 'I'll be fine,' they follow the same path.

While saying 'it's not that difficult,' it is also the most difficult thing.
Because 80% to 90% of projects fail for this reason.
Half of those already vanish before release.

It's not that society is harsh; it's just laziness and a lack of thoughtfulness.
At the very least, let's try it out and reach the point where we can analyze and improve.
If you don't reach that point, there's nothing you can do.

However, the 10% to 20% of people who properly overcome this stage are generally able to monetize.
They have created a flow where they can earn money to some extent continuously.
Because once you can analyze and improve results, you will monetize sooner or later.
That's why I want you to persevere, minimizing risks as much as possible and continuing.

By the way, the question of how exactly to proceed with a project.
It isThe Textbook for Creating Workwritten in.
Those who aspire to side businesses or entrepreneurship, please take a look at it at least once.

I think it's also difficult to continue with perseverance.
Thoughtfulness might also be something one loses when it comes to doing it oneself.
But once you overcome that, all that's left is to do your best.
Everyone, please try your best without getting bored at the beginning or spending too much.
Before that, there's also the hurdle that 'nothing will start unless you take action'.