5 Problems with Your Business Idea
June 1st, 2007 by David Weliver
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.
On Jun 3, 2007, John said:
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).
On Jun 4, 2007, Money Under 30 said:
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!