Many good business ideas fail. The reason for this may be a combination of factors. Perhaps the idea wasn’t well-developed for the market in question. Perhaps the entrepreneur lacked the knowledge or passion to implement the idea. Or, perhaps the idea was based on an unmet need, and the market has been saturated with similar offerings. Whatever the reason, a good business idea must align with current market conditions or risk failing.
It’s a well-known fact that 90% of new ideas fail, despite having great potential. In his book, Savoia outlines a systematic way to improve the odds of your idea succeeding. Essentially, the title of the book refers to the concept that has the best chance of success. The book includes an unbiased section where the reader can test the idea. Then, he can use that information to improve his chances of success.
One reason campus textbook exchange businesses fail is because of the lack of demand. The curriculum changes every year, making it impossible to sustain a business model based on outdated textbooks. This business failed because the margins were too thin to make it profitable. Those margins were too small for the idea to survive in a crowded market. But there is another reason why campus textbook exchange business ideas fail: they’re too obtuse.
Another reason a business idea fails is that it’s too early. If the idea was launched in the early 90s, the market wasn’t ready for it yet. At that time, internet speeds were horrendous and people couldn’t watch videos or play games online. The company didn’t solve the problem, and it ultimately failed. The founder ran out of cash waiting for the market to recover. In the meantime, the business failed to make a single sale.