Business Lessons from the Museum of Failures

0:01This episode is brought to you by Google Chrome. You think you know a browser, but Gemini and Chrome, that's new. It can help you with practically anything on the web, like restoring a vintage motorcycle from a 50-page restoration block, or finally break down that long article you've had open for weeks. Gemini and Chrome is here for it. Ready to make anything online make sense? There's no place like Chrome. Check responses set up required. Compatibility and availability varies 18+. Listen to the heartbeat. Chevy is called the heartbeat of America for a reason. With SUVs made to move with your rhythm.

0:35The versatile Equinox tackles your entire day. The spacious Traverse fits your crew and your whole weekend. And Trax brings style with value you can count on. All infused with tech that has your back. So your drive always hits the right chord. Chevrolet. Together let's drive. I have a lot of favorites. The Pets.com Sock Puppet from 1998. They could have been successful if they didn't build a money-losing business. Harley-Davidson Cologne from 1996. It reeked the scent of tobacco. Here's an unopened bottle. No, they weren't joking. They were serious about it. There's a lot of product extensions.

1:17Of course, sparkling water, Cheetos, lip balm. Another one of my favorites is Alan from 1964. He was Ken's best friend. You may remember him from the Barbie movie. Hi, Barbie. Oh, hi, Alan. Here he is in the original box. Alan wore the same clothing. He was his best friend. The problem is everyone just wanted to own Ken, not Alan. The Failure Museum has over 1 ,000 items and continues to grow. Failed companies, failed products, failed sports-related items, and failed toys. I've tagged all 1 ,000 items of mine to one or two forces of failure. Product market fit, team, financial management, timing, competition, and customer success.

2:03I have a champagne bottle from Webvan's IPO date in 1999. For product market fit, Webvan is a good example. They were the world's first grocery delivery company. You have the right to come home from work and find something good waiting for you in the fridge. They raised over$880 million to launch in 10 cities before having proven one. Business model required so much capital. They had distribution centers. They hired their own drivers, which is why they had to raise$880 million. Not enough demand for the early version of your product. You shouldn't yet scale go to market. I love this one so much that I actually bought two of them on eBay.

2:48For financial management, the ESPN mobile phone. They launched a year before the iPhone. All the phone did was calling, sharing ESPN mobile content and scores. They burned through$150 million, including several Super Bowl ads. It only hit 6 % of its sales target. They probably should have had more capabilities on the phone. There just wasn't enough to do on the phone.

3:15Sean Jacobsohn:Introducing mobile ESPN. Sports fans, your phone has arrived. I do admire companies for taking risks and trying new things. Some of these big risks turn into humongous outcomes and some fail spectacularly. I am a lot of times surprised at the lack of research that they did before they spent a lot of money to roll something out that wasn't going to work.