Determining what it is that makes a business successful is difficult, especially in this economy. Is success measured in numbers or profitability? As Matt Chasen ofuShip explains, many businesses take a backward approach to finding success.
When he started uShip 6 years ago, he says he was very focused on proving out their business model. Unfortunately, a lot of businesses in the Internet space tend to create a business around hype and users and consider the business model later.
Chasen advises entrepreneurs to focus on small, niche industries that maybe aren’t very “sexy.” uShip, for example, is an online marketplace for transportation services. It combines a relatively “old school” industry with new technology. Entrepreneurs need to realize that there are vast amounts of opportunity in areas such as this.
In addition, Chasen suggests that if entrepreneurs are going to fail that they need to fail quickly. He says it is inexpensive and quick to prototype new businesses and business models, so it shouldn’t take too long to find something that works. According to Chasen, the quicker you figure out how you are going to make money, the better your chances are of being successful.