You may have noticed that most new industries or businesses never succeed. This leaves you wondering, is it that people are investing in ideas that are not viable? In this article, we look at some of the mistakes that new industries make when getting into the market. If you are planning to introduce a new product in the industry, then you should read this so as to avoid repeating the same mistakes in future.
Failing to Understand Customer’s Wants and Needs
The most common mistake that new industries make is by failing to understand the needs and wants of their customers. Let’s look it this way, you are launching a new product or software on the market. Obviously, you expect people to fall in love with your product the moment it hits the market. Well, this may not always be the case and in most cases, you will find a good number of people who will criticize your product. As a good and a wise person, what you should do after such criticism is to take it positively and try and address the issue raised by your customers. However, most people ignore the few dissatisfied customers and end up making even more mistakes, hence losing in the long run.
Targeting the Wrong Group of People
Another common mistake that new businesses make is by targeting the wrong group of people. People fail to analyse the market well and then end up spending a lot of money trying to sell a product to the wrong group of people. Before launching any product in the market, you should be sure that you are offering a solution to the people. Try and identify the most potential market gap in the industry, then acquire all the necessary tools needed for the project.
Most of the people introducing a new product in the market feel overconfident and thinks that they should be awarded as they have spent a lot of time and effort coming up with the product. As a result, these people end up overpricing the new product. The effect of this is that very few people are able to purchase the new product and as a result, the new product fails to penetrate the market. You should never overprice or under-price a product, just sell it at a reasonable, acceptable price.
Lack of Experience
Most of the people entering the industry now are very naive. Most of these people lack the required skills and manpower to start and run the businesses. Whereas it is acceptable that one can never be a jack of all trades, it beats logic to understand why someone can start a business where he lacks the technical know-how of how to run the business and still fail to employ a professional with the relevant knowledge on that area. If your profession is in building construction, for instance, we don’t expect to find you working as a medical practitioner. Instead, we expect you to hire someone who is better in that area than you are.