Young businesses do not collapse because of hunger – lack of capital, lack of customers or lack of products are just superficial manifestations. Many businesses collapse in the middle of the second year, even some in the fifth or seventh year of the journey, not because the market is too harsh, but because they have lost their compass. They used to run fast, used to lead, but when the world turned, they did not adjust their direction. Confidence in old victories, loyalty to old strategies, and new ways of thinking are things that silently erode their resilience. They collapse not because of lack – but because they are lost. And once the compass is lost, any effort to accelerate can be… in the wrong direction.
I once heard the failure story of a famous restaurant chain owner in Ho Chi Minh City, – a startup restaurant chain – they made delicious food, good prices, and a hard-working team.
But after 38 months, they had to close. Not because they ran out of money. But because they were going in the wrong direction from the beginning and no one wanted to look back at the map.
This story is not uncommon.
Here are six common strategic “slips” of businesses under five years old, and how to survive if you’re on the verge of repeating them.
1. Choosing an industry based on emotion, not market research
Many people choose to do business because they see “that guy is making money”, “this is hot”, or simply “I like it”.
Then they rush into the product, spend money on building a website, running ads…
But they DON’T spend a week to survey 50 real consumers.
Wrong: Not understanding what customers really need, so they sell but no one buys.
Correct: Do a small market test – sell a sample, ask carefully, interview painfully.
No insight – no strategy.
2. No clear positioning – everything is vague
Many young businesses describe their products like this:
- “We bring comprehensive value.”
- “High quality – affordable price.”
- “Creative, different, people-centered.”
Sounds good, but NO ONE understands. And customers don’t buy what they don’t understand.
Wrong: Vague positioning → no one remembers who you are.
Correct: Position in a single, simple sentence that can be said in an elevator.
For example: “Clean coffee for busy office workers.”
Short, clear, and to the point.
3. Focus 90% of your effort on the product – but 0% on the sales channel
A classic mistake: spending a year on design, materials, packaging – then thinking “How do we sell now?”
It’s too late. The market doesn’t wait for you to “finish it before releasing it”.
Wrong: Selling is the last thing.
Correct: Build the product to 80% is enough, then TEST the market right away.
Because you will never know the remaining 20% if there are no real buyers.
4. Burning money without control – no measurement, no counting
Running ads like: “Just test it, then figure it out.”
Running events like: “This investment is impressive.”
Consequences: Losing without knowing why.
No financial team, founder is both CEO and accountant… silent loss.
Wrong: Spending money emotionally, not controlling ROI.
Correct: Everything must be measured. Spend 1 dong → how many customers → how many people can be retained?
5. Refuse to pivot – stubborn for pride
The product was made for 6 months, but it didn’t sell.
The team knew it had to change – but the founder said: “Just persevere a little longer”.
In the end: lost the whole team, lost the opportunity to adjust.
Wrong: Stubbornly sticking with the old product – even though the market was rejecting it.
Correct: Pivot is not failure, it’s survival.
Today’s big businesses have all turned around at the right time.
6. Don’t think big, don’t build a system – always be a “self-employed person”
Many young businesses get stuck in the cycle:
- Today I sell 30 orders
- Tomorrow I import and deliver goods
- One day I worry about employees quitting
- → No time to build a system – always be a firefighter.
Wrong: Work to maintain – not to expand.
Correction: From year 1, ask yourself:
If I multiply my customers by 10, will this system collapse?
Build to grow, not just to survive.
Strategy is not a 50-page plan
It is a series of right choices – made at the right time.
To survive the first 5 years:
You must know what you sell – to whom – why they need it – and through which channels.
You must adjust quickly – without pride.
You must measure the effectiveness of every dollar spent.
You must build a team – not stick to the role of a soldier.
Businesses do not die because of “one mistake”, but because they keep moving forward without looking back at the compass.
