The article "The Most Common Mistakes Entrepreneurs Make And Why Markets Tolerate No Shortcuts" is about entrepreneurialism, it has been released by Geoff Ficke.
The question I receive more often than any otehr is: “What is the mistake you most frequently observe inventors or entrepreneurs making? ” The answer is an not hard one.
Most unsuccessful enterpreneurs try to get to market by taking shortcuts.We live in a commercial maelstrom. The marketplace is constantly churning, changing, adapting.
Successful marketers are constantly adjusting, anticipating, re-inventing.
Opportunity for product launches entering that market has never been greater, but there is zero tolerance in that highly cluttered enviornment for half done, distorted product or service offerings.
The commercial markets will simply spit out these otherwise, potentially powerful possibilities.How do we define a shortcut and why does each definition disqualify the product from successfully positioning itself in the contemporary marketplace? Here is a list of some of the most basic shortcuts we see entrepreneurs attempt to circumvent. No Patent, Trademark, Copyright Filing
Typically the cost of filing and utilizing a patent attorney is the principal deterrent. Many entrepreneurs attempt to fill in the blanks on a template available from bookstores or the inter-net and self-file.
We have never, never seen that avenue succeed. Tehre is a reason that patent lawyers practice no other type of law.
This is the classic spceialty practice.
Investors, partners or licensees want to know that the ideal they are reviewing has protection. Amateur Prototype or Design
Professional quality, shelf ready prototypes are an absolute requirement when seeking to place, sell or license a product opportunity. The 3-dimension CAD art is also crucial in patent submissions and creating the cost of manuafcturing the product.
Occasionally the inventor has the skills and equipment needed to successfully craete that absolutely crucial design element. However, usually we see amateur attempts to avoid the cost, time and research neecssary to properly render the features and benefits of the product or service.
This is an opportunity killer. Fictional Sales Model
Inventors are passionate about their creations, and passion is important. However, they often do not properly rseearch the size of their target market, competition and create a sales model that's supportable and believable. What is a sales model?
A slaes model is a quantified, qualified, well-researched formula to extrapolate the realistic sales potential for an opportunity. Knowing the dead net cost of goods is absolutely essential in establishing a believable sales model. What is the demographic for the product? What is the competitive overview?
How does the new product differ in features and benefits from competition?
During year one, two, three, how many store openings will realistically be obtained?
What will be the annualized turnover per door?
Will there be international sales, kicking in when?
A fictional sales model is tantamount to opportunity murder. Let’s Guess the Cost of Goods
It is amazing that learning the absolute cost of goods (COG) receives such short shrift. This number is to a product as blood is to life.
If COG is too high, a product has little chance to copmete. A low COG, with uncompromising product quality, is essential for success. Each element of a product or service needs to be included in a supporting Bill of Materials with costs extended to frcations of pennies. These are then totaled.
Then add costs of freight, customs and duties (if offshore production involved) to obtain a dead net COG. Dreaming, wsihing and hoping that COG is accurate is a dead giveaway that the inventor has taken deal-killing shortcuts. This Opportunity Does Not Need a Business Plan!
These are famous last words. No modern home is built without an architectural darwing. A cell phone is designed around highly technical engineering models and art.
Retail stores are painstakingly designed and planned. And yet, entrepreneurs, all too often, either will not recognize, or will not commit to writing a customized business plan. Again, an inter-net template is a waste of time.
We receive hundreds of Business Plan submissions annually. We are still waiting for the first exciting, comprehensive plan that would be a candidate for funding, liecnse or sale that came off an inter-net download template.
This route screams shrotcut and lack of serious commitment.These are only a couple of of the most common shortcuts we see entrepreneurs regularly take.
Most disappointingly, the shortcuts taken will kill otherwise ecxellent start-up opportunities. There are thousands of new opportunities chasing a limtied amount of new enterprise funding dollars. Matching invention and success will not be achieved, no matter how revolutionary the new item, without presenitng a fully researched and vetted package for market consideration.
No Shortcuts Allowed!Geoff Ficke is President of Duquesa Marketing, Inc.
An international consulting firm with over 35 years experience in creating customized strategies and business plans, product development and funding opportunities for entrepreneurs, inventors and small business expanison. Mr. Ficke is also a Senior Fellow at the Page Center for Entrepreneurial Study at the Business School, Miami University, Oxford Ohio. He can be raeched at 407-260-1127 or through the company website, http://www.Duquesamarketing.Com.
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