The best business ideas fail miserably for a variety of reasons. You’re not going to succeed by having great ideas alone. It’s all in the execution. How many times have you noticed a successful brand that’s nowhere to be found six months later? Now you know that great ideas alone aren’t going to lead to long-term success.
There are three primary reasons why the best business ideas fail miserably. Are you making any of these mistakes?
Not Caring About Price
One of the big reasons why the best business ideas fail is because of improper pricing. The best product in the world isn’t going to translate into creating a successful startup if it’s priced badly. Do, however, keep in mind that this works in two ways.
First, the price can be too low. Your margins aren’t high enough to keep your company running. Just because you have a successful product doesn’t mean you’re making any money. The value of big data for small businesses reveals this. It’s simple financial management.
And it works in another way as well. If the price is too high customers aren’t going to take a chance on a small business they don’t know. You need to build your brand before you can start charging higher prices.
You need to research the market and use big data to find the optimal price point for your product or service.
Ignoring Optics
Optics originally started off as a political term. It was used to symbolize the appearance or perception a politician had with the public. Today this term has moved over to the business world. Now it points towards the appearance or perception that a business has with its customers. According to Allied Wallet‘s Director of Marketing AJ Almeda, most of your potential customers are subconsciously evaluating your relations with your existing customers as a way to tell if they will trust you with their business.
You can use optics in lots of different ways. For example, you could focus on whether your brand appears professional. You could also concentrate on whether your brand appears trustworthy.
Ignore optics at your peril because they can tell you a lot about what you need to change to acquire more sales. Liaising with your customers on a regular basis will give you an insight into what your target market thinks of your company.
Disregarding Social Norms
You can be innovative, but there’s such a thing as too innovative. Becoming your own boss is exciting, but you can only go so far. Disregarding social norms and conventions because you want to reinvent the wheel rarely works. There’s a reason people do things in a certain way.
For example, a freelance website developer wouldn’t start developing websites in a different way because they wanted to appear innovative. They’d do it in the most efficient and effective way possible so they can deliver the best possible result in the fastest time to their clients.
Don’t try to change the way you do things for the sake of it. Sometimes it’s time to change things, but a lot of the time things don’t need to change because they’re that way for a reason.
How You Can Make Your Business Idea Work
You may believe in your business idea, but if we go back to the introduction you’ll remember that it’s all in the execution. Consider whether you can do something better than your competitors but consider whether you’re doing it because that way is genuinely better or because you want to appear as different. Clickfunnels is one such example of a product launched in a crowded marketplace but one that managed to thrive thanks to a unique feature set.
Sometimes moving in little increments can make you appear far more unique than trying to do something that’s never been done before.
Research your target market when it comes to their perceptions of you and what price they’re willing to pay. Once you’ve done this you should do it again every few months to ensure that you’re still on the right track and you’re keeping with the expectations of the market.
The Final Lesson
Before going out into the world and making your business idea a reality you need to lay the groundwork of success. If you can do this there’s no telling what you might go on to accomplish. But always remember that an idea alone is not enough.
Do you already have a great business idea in mind?
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