When the fix becomes pretence
The Last Word: The hard test for companies is finding out whether or not they’re willing to stop pretending while they still have a choice. This week, I read a post about why start-ups fail that stopped me on two lines: ‘Long before the cash ran out, before the announcement, before the graceful post about […] When the fix becomes pretence was originally published on Emerging Europe .
The truth about failing start-ups often lies not in the sudden loss of cash or market shock, but in a gradual loss of relevance. Many companies may have raised large sums of money, yet poor product-market fit, weak economics, bad timing, or a proposition with little market value have become apparent earlier. Ego, sunk costs, incentives, reputations, and admitting to a board the change in assumptions can all contribute to this phenomenon.
Companies can deceive themselves into believing their fundamentals are sound and the real problem is easier to address. The danger appears when the organisation becomes adept at providing explanations for problems elsewhere. The right fix often involves changing sales strategies, increasing marketing budgets, launching efficiency programmes, or entering new geographies.
Yet, these actions can be sophisticated ways of avoiding confronting fundamental issues. Established organisations may be especially vulnerable due to their success history, processes, and record of achievements. However, this is when reinvention becomes crucial. Organisations must have the capacity to sense changes, interpret signals, challenge assumptions, reallocate resources, and make choices before they become unavoidable. The real test is whether companies can stop pretending while they still have a choice.
Written by urgent.news from Emerging Europe's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
