Launching a Venture? Some Potential Pitfalls
KARL R. LAPAN, PRESIDENT & CEO, THE NIIC
Many dream of starting a business—few actually do. And even those who do don’t necessarily get it right, initially. Here are a few of the most common missteps we see in general with new startups.
Failure to get plugged in to the “right” method to commercialize your idea
The best way to gauge what might work (and what won’t) is to get in front of prospects from day one. You’ll learn more from surveying your target market face to face than putting in hours of market research. Get people really interested in buying your widget now, before you invest too much time and effort and risk getting it wrong. There’s a reason minimum viable products are essential to the customer discovery and validation process. They are a proven means to curb failure outright. You can always improve on a good thing. But, you may never recover from a total flop.
Pricing too lowest to get your product some exposure
It may be tempting to offer discounts or freebies to entice customers early on, but this can backfire when you need to raise the price later. Plus, it can cheapen your brand. Many consumers associate price with quality or value, after all. Ask for what you’re worth from the outset—and stick to your guns. Consumers just looking for a “good deal” aren’t usually loyal anyway. The lean movement has taught us that pricing drivers behavior, so what behavior do you want to drive?
Thinking you only need money to get your idea launched into a venture
Most entrepreneurs are seduced by the mythology of starting their business in their garage, a Starbuck’s or in the basement or spare room of their house. They forget to think about their new venture’s credibility and the need to surround themselves with like-minded people who can can offer peer support, knowledge sharing, valuable connections, accountability and the business shared services that allow the Founding team to focus on working on the business versus in it. I have met a lot of entrepreneurs who think they just need money to get their venture off the ground. They fail to consider the importance of the “intangibles” – having experts assist them in managing venture risks and uncertainties and accelerating the growth and development of their venture smarter and stronger than they might do on their own. This is where working with established entrepreneurial support leaders like the NIIC can make all the difference in the world.
If you’re a business builder who’s serious and committed to bringing your idea to life, we’re serious about working with you. The NIIC is our community’s most comprehensive resource for high-potential ideas, companies and talented business builders. Why go it alone when you can have the largest entrepreneurial community under one roof in Northeast Indiana behind you?
Interested in learning more? Call one of our concierges for an appointment with a business coach at 260-407-6442.