The point is to prove to investors this is a viable market by providing statistics on growth rate and industry size.
They emphasize return on investment (ROI) decision making, where funds are put into programs and projects with the highest estimated payoff.
This approach is safe, but doesn't encourage innovation.
Even though investors were protected by SEC regulations, they were enticed by company officers, analysts, and financiers to put funds into companies that had little chance of success. Of those businesses, 85 percent are less than 5 years old and are believed to fail due to bad planning or management.
The closure rate of dot-coms must also be put into perspective with the realization that, according to the Small Business Administration, approximately 45,000 businesses fail in the U. Part of the unintended legacy of the Dot-Coms is confusion about the value of business planning.
But surprisingly, most of them slowly succeeded in one form or another.
Dot-Com and Other Business Failures According to Web Mergers, 4,854 dot-com companies went out of business from 2000 to 2003.But if you didn’t, it’s time you sit down and look at it from their point of view. It must explain the strengths of your industry, product, and marketing strategies.It requires statistics and data to prove to your investors they will make their money back — meaning your company is a profitable investment.But there are several avenues you can use to collect it.Custom surveys: If you’ve ever provided a survey to existing clients from a road test or testimonial phase, you can include their feedback to prove your product is desirable. Statistics and facts from official publications, such as the government, are often readily available online. Include the most relevant facts, information, and statistics then cut the fat from the rest.Nearly 4,000 of these investor-owned firms were acquired or made a major shift in their business model to undertake new activities, some more than once.The publicity surrounding these changes left an impression that online business wasn't viable when the real problem was careless investing and faulty investment regulation.But the real risk for investors became apparent as many of these businesses failed or were taken over by other companies.In contrast to the freewheeling days of the Dot-Coms, today's survivors emphasize the relative value of each expenditure.Become your customer: Many businesses create a product because it didn’t exist for their problem. These statistics can be inputted to strengthen your points related to demographics, industry research, and the competition. Investors don’t want to sift through endless information to get to the conclusion.If you’re one of them, you’ve already assessed your product through the eyes of a buyer. But the stats you choose must be linked to your business and/or product positively. The section about market analysis in your business plan is crucial.