“I have a great product. Come and buy it!”
“I have the best business idea. You should invest in it!”
“My product is the best in the market. I deserve your money!”
I’ve made this mistake so many times, it’s painful!
It’s probably one of the biggest mistakes entrepreneurs make when starting their business.
The challenge is to make decisions RATIONALLY, not emotionally.
Entrepreneurship is complex because we act on our emotions, but we should make all decisions with data. Without the proper guidance and discipline, it’s very easy to make mistakes.
Now, there’s no negative judgment of failures, just lessons and growth. You’d be surprised, though, how history repeats itself over and over again down through the ages. The most successful companies and entrepreneurs have learned this the hard way.
1957 — Ford Edsel
Ford invested $400 million into the car, but Americans wanted smaller, more economic vehicles. FAILED.
1975 — Sony Betamax
Sony kept Betamax proprietary, meaning that the market for VHS products quickly outpaced Betamax. FAILED.
1985 — New Coke
The “Pepsi Challenge” ads were responsible for Coca-Cola trying to create a product that would taste more like Pepsi. FAILED.
1993 — Apple Newton
Apple’s great idea was ahead of its time. The technology wasn’t there yet. FAILED.
2006 — Microsoft Zune
The Zune was targeted to take over Apple’s iPod. It didn’t. FAILED.
2006 — HD-DVD
HD-DVD was the hi-def replacement to DVD, but Sony led with Blu-ray built into their Playstation console. FAILED.
2009 — The Nook
Amazon’s Kindle is cheaper and syncs up easily with Amazon’s account. FAILED.
2014 — Amazon’s Fire Phone
Amazon’s Fire Phone released in 2014 looked competitive. Amazon discontinued the phone 13 months after its launch. FAILED.
2019 — Google+
“Google+ was one of the most ambitious bets in the company’s history,” Eric Schmidt wrote in his book, How Google Works. It was believed that it would be a Facebook killer. FAILED.
To answer your question, if a startup has a great product, why aren’t people still buying it?
People don’t buy products or services — they buy results, benefits and solutions.
PUSHING your products and services to the consumer is a recipe for failure.
Startups commonly fail because they waste their most scarce resource (cash) on advertising and promotions. The ‘in’ reality is that marketing goes in one ear and right out the other.
- Figure out your niche in the market; DON’T try to sell to everyone.
- Understand their hurts and their frustrations. Why is it that they will buy your product? Example: people don’t buy eyeglasses, they buy vision, the benefit!
- Learn to feel like them to a point to deeply understand them.
- Communicate their problem in their language. Listen to them, don’t guess what they want — talk to them. What you think they need is very commonly not what they want.
- Test your market BEFORE scaling.