04 May 4 Business Lessons Extracted From The Closing of Katch
Last week Katch announced that it is shutting down effective today. Katch was a website that would save your live Periscope broadcasts for an unlimited amount of time, unlike Periscope’s 24 hours. It’s sad to see a company shut down. Especially one that had almost 150,000 active users (myself included).
I like to look at business as a set of experiments, this allows us to learn as much as possible from these experiments. I am a huge fan of Peter Voogd who recommends that we learn from other businesses to shorten the learning curve. So, let’s shorten the learning curve by looking at what we as mompreneurs, can learn from the closing of Katch.
Lesson 1: Seemingly Successful Companies Fail
Katch is doing well with almost 150,000 active users, yet they are making the decision to close because of the lack of funding from investors. In the farewell post, the Katch team mentions that trying to keep Katch afloat after not getting the funding would be possible, but it would require a lot more manpower and money.
It’s humbling to see a company that is seemingly successful shutdown. Chris Poole mentions that seemingly successful companies fail all of the time. I can only imagine how difficult this decision would be for the Katch team. Chris Poole talks about learning from the experience in his post “Today My Start up Failed” when he says
If there’s a silver lining in all of this (and there is), it’s that I can help educate others about a path fraught with hardship, but rewarding nonetheless.
I am interested in learning more about the lessons that he can teach us. Especially knowing that 98% of companies fail within the first 10 years according to Inc.com. Here are a few more lessons that I think are important especially as mompreneurs starting out.
Lesson 2: Have an email list
Because seemingly successful companies can fail, it’s best not to rely on social media for selling your products and services. This does not mean don’t use social media to sell, instead, it means to bring people to your email list. It comes down to having control over your leads and not having to worry about social media sites closing or changing their algorithm.
Having an email list allows you to communicate directly with your potential clients so that even if a platform were to close you would still have all of your contacts. In addition, if you do change businesses, you could simply send them an email to opt-in to the new list and continue with your new business.
Lesson 3: Don’t put all of your eggs in one basket
For mompreneurs, I am referring to diversifying your social media presence. This does not by any means mean to overwhelm yourself being on every platform but having 2-3 platforms where your ideal clients are hanging out and being consistent there.
I have had great success with repurposing content for the different platforms it has allowed me to reach more people and be on multiple different platforms without much additional effort.
Lesson 4: Diversify your income
Having multiple forms of income streams helps you to stay profitable and have something to fall back on even if one project does not work out. This is especially helpful for mompreneurs who simply do not have the option of going without an income.
There are so many ways to monetize and getting creative with your monetization strategy can be super fun! Some examples of other streams of income are passive income products, group & private coaching, affiliates, adding ads to your blog, really the possibilities are endless.
If you are brand new to business you want to focus on one income stream and as you get momentum there you can start to add others. Ask yourself if there other forms of income you could be adding to your business? Make a plan & start putting that plan into action.
In summary, seemingly successful business fail. Ways to protect your business from being affected by the closing of other businesses is to diversify your income, the platforms you are on and ultimately leading people to your email list where you will have control over the outcomes of your contacts and leads.
Think of business as a set of experiments and learn as much as you can from your own experiments and the business owners around you (we are not competitors we are a team!). Together, we can be far more successful by learning from each other than we can if we all make the same mistakes and not stopping to extract lessons from each other. I often share my mistakes with you for this reason.
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