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Worst business ideas. The most unsuccessful business ideas in the world

Often, companies and entrepreneurs set themselves ambitious goals - to create a fundamentally New Product or a service, to find a new approach to doing business, or, conversely, to stick to proven traditions, despite the changes. All this is done with the aim of making as much profit as possible, but some companies suffer losses instead.

In 2010, Mikhail Prokhorov's ONEXIM investment group announced the launch of a project to create an environmentally friendly "people's car". Its budget was 150 million euros. According to the developers, industrial production cars was supposed to start in 2012 at a plant near St. Petersburg, the price of the car was announced at 360 thousand rubles. Then the launch date was pushed back to 2013. And finally, in February 2013, it became known that the first mass-produced yo-mobile could be released in March 2015. The estimated price of the car also rose to almost 500 thousand rubles.

Many experts consider statements about the beginning series production hybrid cars are unfeasible, since the E-Auto team is not experienced enough, and the project itself is low-budget. In 2011, ONEXIM admitted that it was looking for co-investors for the project. Sources estimated the necessary investments to support the project at 115 million euros.

Solar batteries "Rosnano"

Another example of an unsuccessful business idea in Russian big business is the Rusnano project with the Nitol group for the production of polycrystalline silicon for solar cells - Usolye-Sibirsky Silicon. Since 2009, the company has invested RUB 9.4 billion in the project. However, this area turned out to be unprofitable: the cost of processing exceeds market prices by 7 times. Now Nitol has requested financial assistance from the state in the amount of 4.7 billion rubles for the development of production. However, according to experts, such production in Russia has no prospects, since Russia is not a country where solar energy can become a priority, unlike Spain, for example. There, the development of solar energy has led to an increase in the cost of electricity.

chocolate crucifix

The American confectionery company Russel Stover released a new product in March 2004 - a 15 cm crucifix-shaped chocolate bar. The chocolate novelty outraged believers. Later, high-ranking clerics also joined the protests, believing that an edible crucifix was not the best way to express religious feelings.

True to the Ford tradition

In 1908, Henry Ford first released on the emerging automotive market its Model T, then it was a state-of-the-art car with good value for money. Years passed, the American auto industry was actively developing, new manufacturing companies appeared, new, modern types of cars appeared. However, the head of Ford Motor, Henry Ford, refused to release new models and the company continued to produce outdated T. As a result, Henry Ford lost his 45% market share.

In pursuit of beer profit

Beer manufacturer Schlitz in the middle of the last century was second only to Budwaiser in terms of turnover in the United States. The ambitious director of Schlitz decided to overtake the competitor by using cheaper ingredients and speeding up the fermentation process, which would allow him to sell more beer. At first, this technology really increased the company's profits. But this did not last long, as Schlitz beer tasted worse, in addition, cheap beer ingredients settled at the bottom of the bottle and formed an unpleasant-looking substance. Schlitz ruined its reputation, but could not be rehabilitated.

Heart stimulator

Medical device manufacturer Guidant sold more than 50,000 new pacemakers before they were found to be short circuits. And most of them have already been implanted in people. Guidant went bankrupt after 45 short circuits and two deaths.

Failed Acquisitions

One of the most unreliable segments in business is the Internet, where competition is off the charts and technology is improving every day. In such conditions, the conclusion of transactions for the purchase of certain services is always a certain risk. So, in 1998, AOL bought the ICQ instant messaging service, developed by the Israeli company Mirabilis, for $ 400 million. Then it was biggest deal. But since then, ICQ has not been able to succeed, giving way to competitors such as MSN, Skype, Google Talks and other services. As a result, the service was sold to the Russian Mail Group for $187 million.

The biggest failure of AOL can be considered the purchase social network Bebo in 2008 for $850 million. The success of Mark Zuckerberg's Facebook pushed the company to this step (the number of Facebook users increased by 150% monthly and reached 100 million by the end of the summer). However, AOL fails to create serious competition for the most popular social network in the world.

Over the next two years, the number of unique visitors to Bebo decreased from 22 million to 14.6 million per month, and then continued to fall. In the summer of 2010, Bebo bought the private fund Criterion Capital Partners for $10 million, 85 times less than the price at which the social network bought AOL. Now Bebo is a small company with a staff of 50 people.

The Power Mac G4 Cube is considered Apple's pinnacle of design and business failure at the same time. Thanks to the special transparent design of the case and speakers, this computer was included in the collection of the New York Museum of Modern Art.

The Cube was sold between 2000 and 2001. Apple positioned it between the iMac G3 and Power Mac G4. However, despite its innovative design, the computer has been criticized for excessive cost. In addition, the cases of the first copies had defects, due to which they were covered with small cracks. In addition, the Power Mac G4 Cube lacked an audio input. To save the day, Apple lowered the initial cost, installed a more powerful PowerPC G4 500 MHz processor, replaced the CD drive with a CD-RW, and also offered more advanced NVidia video cards as an option. But on July 3, 2001, Apple announced that the Power Mac G4 Cube was being discontinued.

On the pages of our magazine, we often talk about successful business ideas and somehow forget to highlight the mistakes of a business, especially a large one. Let's correct the situation, besides it is very interesting to think about the reasons for such failures. because big business there is everything - a day, entire departments of analytics and marketing.

The ONEXIM investment company has announced the start of a project to create a national, environmentally friendly car. Its budget was about 150 million euros. The developers said that the production of machines at an industrial pace will begin in 2012. Not far from St. Petersburg, a presentation of the price of a new car of about 360 thousand rubles was held. Then the launch date had to be postponed to 2013. And at the beginning of this year, it became known that the firstborn would roll off the assembly line by March 2015. The approximate cost also increased to 500 thousand rubles.

Experts believe that the release of e-mobiles will remain a dream, since the team is not very experienced, and the project itself is underfunded. ONEXIM admitted in 2011 that it was looking for co-investors. Sources have estimated that EUR 115 million in investment is still needed to sustain the project.

Solar panels

An unsuccessful example of Russian big business is the project of Rosnano and the Nitol group for the production of polycrystalline silicon, which is used in Usolye-Sibirsky Silicon solar cells. Since the beginning of 2009, the firm has invested in new project 9.4 billion rubles

But this area has become unprofitable. Processing exceeded market prices by seven times. Now Nitol is asking the state for a subsidy equal to 4.7 billion rubles for the development of production. The opinion of experts is that such production has no future, since Russia is not the country where solar energy will be in the first place as, for example, in Spain. In it, solar energy has led to higher electricity prices.

Sweet crucifixion.

In 2004, the American Russel Stover confectionery company released a new product. It was a chocolate bar in the shape of a crucifix fifteen centimeters. The believing population was outraged by the novelty. He was joined by high-ranking clerics, who also felt that a chocolate crucifix was not the best The best way convey religious feelings.

Ford tradition.

Henry Ford, for the first time in 1908, released his Model T to the automobile market. In those years, it was a first-class car. Time does not stand still and the automotive market has developed rapidly. In addition, other companies appeared, and with them the latest models and types of machines. But Henry Ford, the head of Ford Motor, did not want to start producing new models, and the company produced the same T. As a result, Henry Ford lost 45 percent of the market.

People, as a rule, try to learn from mistakes, the only question is preferences: on their own or others. A new book Lawrence Weinzimmer and Jim McConaughey's "The Wisdom of Failure" gives you the opportunity not to step on the same rake that has already filled others with bumps.

Do not be afraid to admit the decision is unsuccessful and close the case

After significant financial and emotional investment in a project, it is quite difficult for a manager to admit that it is a failure. News Corp. spent $580 million on the purchase of MySpace in 2006, and also invested millions more in the social network. However, Facebook proved to be more successful, and MySpace eventually had to be sold for $34 million. Successful leaders are able to admit failure and leave in time.

Remember that no one needs “the healthiest cigarettes in the world”

Tobacco company R.J. Reynolds has spent more than $1 billion developing lower-nicotine Premier cigarettes. But smokers rejected the new product because of its unpleasant taste and burning problems. As a result, “the healthiest cigarettes” were not needed by anyone. Smart executives don't think their taste is the same as the consumer's.

Don't be afraid to say "no" to easy money

The president of LA Gear increased sales of athletic shoes from $11 million to $820 million in four years using a variety of marketing methods. But the pursuit of profit ruined a promising company. Sale of shoes at discount prices in every store, including Wal-Mart, reduced the attractiveness and prestige of the brand. The head of LA Gear could not refuse "easy" money and paid dearly for it. The ability to say “no” to a seemingly attractive opportunity is one of the most important characteristics of a true leader.

Constantly work on new ideas so you don't have to use old ones

Richard Branson very often says yes, but only right projects. The British businessman always has a long list of new ideas waiting to be put into action and is oblivious to random offers. Decide for yourself what the company needs for successful development, and only then consider new proposals.

Resist the temptation and don't let competitors determine the company's strategy

American Coca-Cola did not notice how it joined in the business adventure provoked by Pepsi. In an attempt to give the “appropriate response” to the “New Generation Chooses Pepsi” campaign, Coca-Cola abandons the classic formula and creates a new drink, New Coke, which turned out to be extremely unfortunate. The failed soda was the biggest business mistake of all time.

Do not forget about the main product that is popular with customers and makes a profit

Netscape created the first and most popular Internet browser. But the company wanted to create something new and began to develop new language programming while ignoring browser enhancements. Founder Marc Andrien later called the strategy "a billion-dollar mistake."

Upgrade first what you are already doing well

Former Caterpillar Managing Director George Schaefer was well aware of the company's leading position in the market. Having several successful basic models, Caterpillar easily created updated, but no less popular designs based on them. Before you look around, make sure that you have used the full potential of the business.

If you're great at doing the wrong thing, you won't succeed.

Pets.com invented the hugely popular image of a puppy doll on a finger, as well as the original website for the sale of pet products. However, the market was not ready for such a project. Americans prefer to buy everything necessary for four-legged pets, visiting a regular supermarket or a specialty store.

Don't just focus on efficiency

Trying to make Zappos more efficient company, Tony Shay outsourced the logistics to another firm. However, this move backfired: shipments were delayed and customers were dissatisfied. As a result, Shay abandoned the innovation.

Do not allow the latest technologies become a brake

Pioneer Seed was a leader in corn seed production and had an army of loyal customer farmers. When biotechnology appeared on the market, the company decided to try some developments in parallel with traditional methods. But they didn't work together, resulting in Pioneer Seed losing a lot of money and getting dissatisfied customers.

Do not forget that too rigid leaders and unrealistic goals lead to disastrous results.

Terrible bosses are often praised for getting things done. However, former Sunbeam managing director Al Dunlap showed the dangers of this leadership style. His aggressive, and at times brutal, methods of working with people, as well as unrealistic goals, led to high-profile ethical scandals, resignations, loss of profits and the imminent dismissal of Dunlap.

Don't try to be everything - it will only confuse the consumer

Kmart was the first successful discount store chain in the United States. However, later the retailer tried to attract trading floors and wealthier buyers. In 2000, Wal-Mart began to focus on low prices, while Target is aimed at those who want to buy high-quality and fashionable goods. Kmart tried to do both and failed. As a result, the company had to declare bankruptcy in 2002.

The desire to avoid conflict makes people passive-aggressive.

The idea of a conflict-free team is certainly very attractive. However, a "cloudless" environment can be dangerous and create hostility among colleagues. The absence of conflict means that mistakes and problems are not noticed or hidden, and people begin to do and say nasty things on the sly. Outwardly, everything may look harmonious, but, in fact, the team is incapacitated. The desire to please everyone can have serious financial consequences. The head of Malden Mills, Daniel Fersten, continued to pay wages to workers after the plant burned down completely. These actions had great public outcry, but the costs led to debt and subsequent bankruptcy.

Treating employees like children will lead them to step back and quietly watch the collapse.

Jill Barad became the first female head of Barbie thanks to the exceptional attention to detail that is very important for a product manager. However, this style is inappropriate in the position of managing director. Total control leads to passivity and disinterest of employees. As a result, Barad had to retire in 2000.

Concentrating on your own image, and not on the company, negatively affects both

Carly Florina came to Hewlett Packard as a real celebrity. Prior to that, she became famous for her ability to make important decisions, as well as frequent appearances on TV. IN new position she also tried to hold a series fundamental changes which were often poorly thought out and not agreed upon. The manager's keen desire to look spectacular and decisive had a negative effect on Hewlett Packard's results. Real leaders think first about the company and then about themselves.

In business (as in life) there are times when you want to close yourself at home, be sad and not show yourself to anyone. For example, when I ordered a large batch of goods for a promotion, and bullshit came, or when a long-time partner let me down and didn’t even pick up the phone.

It is the most difficult for young businessmen to experience such situations. But one failure is not a reason to close the business and go into downshifters. We've rounded up four stories of varying degrees of severity from seasoned entrepreneurs where they share what went wrong and what they learned from their mistakes.

The names have been changed, but the stories are real.

Don't rush if you can't see the fire

Except for some of my neural connections, no one was hurt then. Helped ingenuity and the ability to think logically. Since then, I am no longer in a hurry at all. I don’t see a fire, so we check everything inside and out. You can slowly and “with smoke breaks”, but carefully.

Don't promise to do what you can't

Once I undertook to make an online store project with a connection to a European goods aggregator. There were only 6 such projects in Russia at that time, and we had no experience even with ordinary online stores. The customer wanted a site on one management system, but in the end, when we had already taken the loot, we told him what we could not do on this system (it was a shame). They offered another option, and thank the Lord that I found a person who could do it.

In the end, they did everything well, without earning, however, even 1000 rubles on this project - they worked for the sake of work. And yet, the customer asked to transfer the website to another management system - bitrix (we never worked with them at all).

I did not consult with the programmer and the team, and told him the amount for the work "from the ceiling." Later it turned out that I took 2.5 times less than the cost of development. Saying: “Pay me more money! 4 times more!” was no longer an option. At least that's what I thought. I realized that I would not make a website for the customer for my own money, I had to refuse him. It was very dumb, it seemed that it was a failure, pain and generally the end.

Six months later, I found out that this customer still transferred his site to bitrix, and paid more than 450 thousand rubles for this (I forgave 140 thousand). After that, it became a shame: I could explain that I had incorrectly calculated the cost of the work and that the budget needed to be increased, and not be afraid that I would be impudent.

I end up taking no more unique projects without consulting their direct developer.

Explain what is included in the cost

In general, it was like this: on the eve of the new year, a call from Khanty-Mansiysk (rich in the north, cool!) - “We urgently need a website for our private security company!!! Needed yesterday! We pay double the price or whatever you say." I named the standard price, they did it yesterday, shook hands, launched it into the light. Somewhere in February, a call from private security companies: “Why is our site not shown on the first line of Yandex?”. Explain what SEO is additional service, it’s like you have to pay for it (it was 2011, all that). The director of the private security company yelled obscenities at me, said that he would come to “our fucking Yekaterinburg”, and he also has a service weapon. And then no one will prove anything.

In the end, I returned the money to him, the conflict was settled. The site stood on the Internet under a domain purchased for the customer, but then closed on its own. Since then, I always tell customers that search engine promotion is not included in the development of the site. Three times, different words. And that it can ultimately cost several times more than the development of the site itself. And that in social networks to advance is also not equal to the development of sites.

And 6 more rules that would be good to follow

My biggest business failure is total ruin.

It was not even in Russia. It's simple: the growth of the dollar forced to change the course of development (the price of goods from China has increased). After 2.5 years of work (a year and a half only in plus and the last six months at zero or minimal profit), I had to close. It was a painful blow - I invested all the money in this business.

Then I took up another matter, already without reference to the dollar, but the powerful of this world ate it without chewing. After that he was engaged in the production of anti-skid tapes. Why did he leave - read in paragraph No. 6 the rules that must be followed in order not to screw up:

Engage in the release of your goods / products, which does not depend on the exchange rate of $.
Always be prepared for inspections by supervisory authorities.
Laziness. Put away. At all.
Savings should not be everywhere. And work for the sake of postponing is not always necessary.
You need to go to the area with which you are more or less familiar or in the one you are in love with.
Don't work with friends! You will lose friends. But if you decide, then you need to negotiate on the shore: with contracts and the prescription of all points of partnership or cooperation.

Rejections are normal. Learn to accept them.

Another painful thing in life and business is rejection. In the supply of goods, in cooperation, in credit, after all. Don't take each one to heart and then google "spells to fail the enemy's business." Better learn to deal with your own failures.

The goal of any business is to make a profit. Small failures happen periodically, but the collapse is familiar and big players who know the market and the laws of movement of finance. Luck is a capricious lady, it is impossible to predict her mood.

Companies and entrepreneurs often set ambitious goals for themselves - to create a fundamentally new product or service, to find a new approach to doing business, or, conversely, to stick to proven traditions, despite the changes.

All this is done with the aim of making as much profit as possible, but some companies suffer losses instead. In 2010, the ONEXIM investment group announced the launch of a project to create an environmentally friendly "people's car". Its budget was 150 million euros.

According to the developers, the industrial production of cars was to begin in 2012 at a plant near St. Petersburg, the price of the car was announced at 360 thousand rubles. Then the launch date was pushed back to 2013. And finally, in February 2013, it became known that the first mass-produced yo-mobile could be released in March 2015. The estimated price of the car also rose to almost 500 thousand rubles.

Many experts consider the statements about the start of serial production of hybrid cars unrealistic, since the E-Auto team is not experienced enough, and the project itself is low-budget. In 2011, ONEXIM admitted that it was looking for co-investors for the project. Sources estimated the necessary investments to support the project at 115 million euros.