A fundamental Start-Up mistake!

AI, block chain and Fin Tech start-ups appear to be sprouting up everywhere.  Founded by someone who has what they think is a great idea who then goes ahead to create a product.

But they make some fundamental mistakes which more often than means they fail.

Transcript

AI, block chain and Fin Tech start-ups appear to be sprouting up everywhere.  Founded by someone who has what they think is a great idea who then goes ahead to create a product.

But they make some fundamental mistakes which more often than means they fail.

My name’s Rashid Kotwal.

There’s a classic saying, “That those that forget the lessons of history are doomed to repeat them”.

Being in the IT industry I lived through the dot com bubble and bust where companies spent copious amounts creating products but never focused on who would actually buy them.

And we all know how that ended up in tears.

Having consulted to a number start-ups who’ve already created a product, but are struggling to take it to market, we’ve seen common mistakes that stunt growth.

The first big mistake is thinking you can provide value to “everyone” in your broad market. You can’t.

While your solution could be applicable in diverse markets, pick one and start there.  Test it out and see if you get traction.  If you do, go deeper and make it into a vertical.

Narrowing the market will allow you to target prospects specifically with a marketing message that resonates exactly with their pains, frustrations, hopes and desires.

You’ll attract exactly the people you want while repelling the rest who aren’t a good fit.

Another major mistake is thinking too big too fast.

Start by pitching to small players.  Sure you’ve got a supply chain solution which will revolutionise distribution, but do you really think a major supermarket will take you on and implement this if you’re a start-up?  They’re not going to risk their reputation on you.

And yes, I’ve seen people try this and wonder why they fail to get traction.

Another mistake is focusing on the product rather than sales.  Stop trying to make your product perfect before getting it out there and making sales.

The reality is unless you get good at both marketing and selling, you’ll never serve all the people who could benefit from your expertise.

Which means both you and they lose out.

To sum up, in priority order focus first on marketing and sales, start with small customers and have them help you with further development.  This way you give your market what it wants.

Only then attempt to scale up. Otherwise you risk burning large organisations before you actually have a product that works.

Want help with your business, sales and marketing strategy?  Give me a hoy at RevealedResources.com and we’ll discuss how our programs will keep you on the right track for growth.

Till next time, this is Rashid Kotwal.

 

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By |2019-10-03T09:43:43+10:00October 3rd, 2019|Marketing, Practical Tips, Sales, Video, Video Carousel|0 Comments

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