The mistake: Vine never recovered after Instagram launched its video feature a few years ago, stealing a chunk of Vine’s users. Naturally, they decided to lose dead weight, which meant, “So long, Vine.” However, Twitter has not been very profitable as of late, and they’ve been cutting jobs left and right. Many stars were born out of posting short, funny clips that garnered fans across the world. Twitter owned a 6-second video app called Vine. You have to make sure that your audience wants to return. They’re oftentimes the first point of contact between you and your audience. Make sure that your sales page or web site or Instagram feed is on point. The lesson: First impressions are everything. By the time they’d added that, the app was already known for being a place where you could say whatever you wanted - even if it was considered hateful. From the get-go, Secret had no community rules or a reporting system in place. If first-time users don’t have a great first experience, they won’t return. So, many first-time users would log-in and see no content. The mistake: The app was flawed because users could only see 1st and 2nd degree connection posts. The founder said that the app ceased to meet his initial vision, and he decided to return the unused money to its investors. While it seemed like a great idea, people soon started using it to cyberbully others. Still, despite all the backing it received, it didn’t survive. It managed to raise $35 million in venture capital in just a few months. Via Secret was an app that allowed users to send anonymous messages to friends and family. Make wise investments and always think about the return. Be judicious about how you spend your money. Always think about your next move, possible obstacles and solutions when writing up your business plan. The lesson: It’s up to you as a business owner to be quick on your feet. Those endorsements didn’t amount to much in the end. The Mistake: To combat competition, Meerkat chose to put loads of money into celebrity endorsements instead of focusing on improving the user experience and building a community. A few months later, Facebook added live streaming to its app, and Meerkat simply couldn’t keep up with the competition. To add salt to Meerkat’s wounds, Twitter then limited Meerkat’s access to its social graph, on which it had depended. Twitter acquired Periscope, an app that does the exact same thing, and launched it a few weeks after the release of Meerkat. They weren’t the only ones who found it to be a great idea. The company received millions in funding, as investors really thought it would be the next big thing. You could start a live broadcast on your phone for anyone’s viewing pleasure. Here are 15 businesses that died because of one mistake.Įver heard of a company called Meerkat? Well, Periscope blew it to smithereens. Since I know that you want your business to have longevity, I’ve compiled a list of 15 companies that were forced to close their doors, as well as the takeaway lessons so it doesn’t happen to you. We just have to be strategic, plan ahead and think of possible problems that may arise, as well as think of what we would do if they were to occur. If huge corporations with several brains behind them can fail, then us little guys can suffer similar fates - if we don’t take heed.Īlthough the walk isn't an easy one, having a business of your own and the freedom that comes with it is worth it. Of course, some magic enters into the equation as well. If you want to make a ton of money in business and potentially become 100% location-independent, there are certain rules in business that need to be applied. Some companies make one simple mistake, and just like that - pouf! They’re out of business. One day, you could be on top of the world the next, it all could come crashing down. Running a business is not for the faint of heart.
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