A multitude of potential pitfalls can negatively impact entrepreneurs as they eagerly try to build their fledgling companies…and basically crush their spirit if allowed. In my experiences, there are four reasons that stand out the most:
- Lack of Research – Research is imperative. It provides insight about what your competitors are doing so can stay several steps ahead and create innovative ways to develop and market your offering. It also provides you with insight about the costs and components of running a successful business in your target industry. Spending time investigating a specific market will show whether there is a demand for your intended offering. Successful research will help shape your vision and strategy. Without it, you risk the future viability of your business.
- Poor Planning – There are a lot of moving parts that need to come together before your finished product is ready for sale. You have to coordinate delivery timeframes with vendors and partners who are all part of your launch schedule. In addition, you need to plan for bill payment. Figure out what your accounts receivable schedule looks like so you can continue procuring supplies and services you need in a timely manner.
- Boiling The Ocean – Sometimes it’s hard to know exactly what will be a hit in the market. Hindsight is always 20-20. Sometimes you decide to make six different handbag styles, each available in seven different colors because you don’t know which one will be “the” one until it suddenly appears in an issue of InStyle and you now need to satisfy excessive demand without nearly enough inventory because you spread your resources too thin….ahh, but I digress. Focus groups can help! Talk to your target market and gather feedback. It may push out your delivery timeframes but the insight can help perfect your offering.
- Nothing Unique – If there is nothing new or different about your product, nobody is going to buy – no matter how much you love it. It’s hard to pull off those rose-colored glasses and embrace the reality staring back at you. Leather handbags? Not otherworldly. Romance novels? Been there, read that. The key is to make your work stand out. Dig deep and find what sets your product apart from the competition and play that up otherwise it’ll get swallowed up into the abyss. Perfect your offering. You care, so figure out a way to make everyone else care. Establish a connection, show how them why they should be invested, convince them why they need your product.