5. Competition is too stiff
Even with a comprehensive benchmarking analysis in the initial business plan, competition can evolve quickly. In many industries, there are new players every day in their respective markets.
To avoid failure, benchmarking must be a continuous effort. If your competitors are too big, it’s in the business’s interest to find a niche or some form of added value to your products or services.
Take Toms shoe store for instance. They broke into the highly competitive world of mid-level shoe sales by offering a socially conscious selling point to the value of their shoes. For every purchase, they give a pair of shoes to a child.
Note how their model also connects with their target audience at an emotional level.
(Blog."Reasons why businesees fail and how to avoid them". Liveplan 2021)