This is probably the biggest mistake internet entrepreneurs make and we’ve seen it all too often!
First off, there are literally millions of websites and mobile applications actively used around the world today so there’s a fair chance that you’re idea has already bared fruit for somebody else.
This then is the first mistake – lack of basic research.
Not too long ago an enthusiastic customer approached us with a ‘new’ idea that was both unique and promised to be handsomely profitable.
A couple of notes on this assertion:
- Is it really unique? You don’t need to spend money on research to figure out whether or not this has been done before. Simply go onto a good search engine like Google and start searching for companies who are already doing what you’re thinking about.
- If it’s truly unique then there’s no way of telling just how profitable it will be unless you do market research and even then it’s not guaranteed. Your friends telling you it’s a great idea doesn’t count as research!
If you really do have something with potential the next big mistake is an inadequate budget.
On so many occasions we’ve been approached by fledgling entrepreneurs with a fantastic idea and a budget to go along with it. On closer inspection of the budget you notice what’s missing… Marketing! Apart from the cost of actually developing the product, marketing is the next most important budgetary requirement.
Bottom line, you can have the best product in the world but if no-one knows about it you’ll never have enough customers. Word-of-mouth is a legitimate answer to the previous statement but it’s very seldom enough. Go and do some homework on the life-cycle of a new product particularly with regard to the introduction phase as it relates to sales and revenue.
There are additional considerations with new product ideas especially in the area of feasibility and sustainability, but this was just a quick tip that hopefully guides you along the lines of spending your money wisely.
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