How to Increase your Sales: Why 90% of businesses fail

About this Video

• Video Title: How to Increase your Sales: Why 90% of businesses fail
• Channel: Aspire
• Speakers: The transcript does not name the speaker(s).
• Duration: 00:07:41

Introduction

This video discusses why many businesses fail and offers a framework—the MOAT strategy—for evaluating the viability and potential success of a business. The speaker uses the MOAT strategy (Margin, Operations, Advantage, Total Addressable Market) to analyze business models and identify key factors contributing to success or failure. The video also emphasizes the importance of target market and pricing strategies.

Key Takeaways

• MOAT Strategy for Business Evaluation: A framework to assess business viability using four key factors: Margin (profitability), Operations (scalability), Advantage (competitive edge), and Total Addressable Market (market size). Businesses scoring above 30 across these four factors are considered fundable, those between 20 and 30 are fixable, and those below 20 are considered to be businesses to flee.
• Importance of High Margins: Focusing on higher-margin clients, even if fewer in number, is often more sustainable than chasing high volume with low margins.
• Targeting the Right Market: Selling to a wealthy, discerning clientele (the top 10% with 60% of disposable income) can be more profitable than aiming for a mass market.
• Leveraging Entrepreneurial Background: A successful business often builds upon the entrepreneur's experience, knowledge, network, resources, and reputation.
• Addressing a Measurable Pain Point: Successful businesses solve a clearly defined problem and provide measurable results for their clients.