THE TWO MOST POPULAR WORDS among experienced businesspeople are “due diligence.” This requires taking the time, however long, to get the critical information you need to make the right decision. The biggest mistakes we make are those where we commit time, money, and resources without having done sufficient homework. The best decisions we make are almost invariably based on having acquired complete knowledge of the issue before we act. We “look before we leap.”


Reasons for Business Success


In business, according to Forbes magazine, the number one reason for failure is that there is no demand for the product or service. Whatever it is, the customers don’t want it or don’t want it at the price that the company has to charge to stay in business. In 2013, more than $8 billion was spent on market research in the United States alone.

This money was aimed at finding out what customers really wanted before the product was produced and brought to market. But even with exhaustive research, 80 percent of new products eventually fail and have to be taken off the market. According to McKinsey & Company, a leading business consultancy, the major reason for business success is high sales. The major reason for business failure is low sales.

All else is commentary.The primary reason for the poor decisions that lead to market failure is that the key people failed to ask the right questions or to get the necessary information before the product was produced and sold.

Absolutely true