Buzzwords alone don’t make a successful business.
Remember back during the dot com bubble, when all a company seemingly needed to do was add “e” to the beginning of its name to get an avalanche of investment capital?
Well, those days haven’t quite returned. However, human nature has not changed in the decade since the bubble was popped. We should remember the folly of that craze when evaluating todays’ data-related startups.
Research Access readers certainly tend to be technologists and data lovers. We tend to get excited by innovative ideas having to do with data. Add in another buzzword such as mobile or crowdsourcing, and you have our full attention.
TechCrunch recently reported on the spectacular flame-out of InfoArmy, a crowdsourced data report service started by the founder of JigSaw.
InfoArmy is a service that provides competitive intelligence reports produced by dutiful data soldiers. Purchasers can access the reports in a number of ways, including via tablet device.
Great idea, right? Right. Except the company recently reported they have had a very difficult time selling subscriptions.
This is a good reminder.
You can have the best idea in the world, but if you don’t execute on fundamental business principles, you will fail.
Even if the data in your business plan say otherwise.