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5 Problems with Your Business Idea

Think you’ve got a winning business idea? Let me prove you wrong. (But trust me, this will help you).

Think you’ve got a winning business idea? Let me prove you wrong. (But trust me, this will help you).

1. Your Market is too Big

Wal-Mart can sell a little bit of everything to almost everybody in the United States, but starting off, we cannot. You’ll have to do the selling, at least in the beginning. So choose the smallest, most-qualified market possible. Have a niche. It’s easier to make a big splash in small pond.

2. Your Offerings are too Many

Simplify, simplify. Think of the 80/20 rule. 80% of your business’ value will come from 20% of your products or services. It’s better to start with one high-quality product or service than ten mediocre ones.

3. Your Sales Pitch is too Long

Be able to sell your product in 30 seconds or 100 words; few adults have attention spans for anything more. Even if you won’t use them, record a radio ad and write an online search ad for your product. Are they enticing?

4. Your Website is too Complicated

Your website should do three things. Introduce your product, build your credibility, and convert. Do it in as few words possible. Yes, you may want a content-rich site or a blog to help with your online marketing efforts, but let those pages lead into your primary site. Don’t let prospects get distracted by articles, gizmos, and links.

5. Your Costs are too High

Don’t pay for anything until you absolutely have to. Keep initial inventory low, and keep advertising minimal until you know what works. Better yet, take advantage of your networks and build a viral marketing campaign before dumping cash into any advertising at all.

About David Weliver

David Weliver is the founding editor of Money Under 30. He's a cited authority on personal finance and the unique money issues we face during our first two decades as adults. He lives in Maine with his wife and two children.

Comments

  1. How true 1 & 2 are, every new entrepreneur I meet wants to sell everything to everyone.

    For 5, I’ve add: don’t aquire overheads that you don’t need (like an office).

  2. Very good point, John. There’s NO point in investing in an office, fancy phone systems, or anything else until you can prove your idea has teeth!