Myth-- A New Business Must be Based upon Uniqueness
This small business mistake is part of a collection excerpted from Gary Schine's book 101 Small Business Mistakes
Myth-- A New Business Must be Based upon Uniqueness
How many times have you heard someone say, "I've got a great business idea." He or she will go on to explain a new and unusual concept. The logic is that a business that is new and different, will take the world by storm and be a huge success. In reality, a business that is the same as, or only modestly different from an existing businesses has a much better chance of success than does a new concept. The fact is that if businesses of a certain type are doing well, it proves that a market exists for their products or services. It is easier and less risky to tap into an existing marketplace as a new competitor than it is to create a market or hope that an untapped market exists.
Evolutionary rather than revolutionary changes simply offer the entrepreneur a better chance of success. Entering an industry and offering better prices, better service, or higher quality is often enough of an improvement. Concentrating on a clear niche that is being underserved by existing businesses within an industry is another modification that can work well. But a radical change is likely to be met with skepticism, rejection, or apathy by the intended market.
This is not to imply that unique businesses never succeed. There are hundreds of stories of entrepreneurs coming up with new ideas, and using those ides to launch successful ventures. However for every one of these stories with a happy ending there are many more with unhappy endings. The introduction of a radically new product or service usually takes years and untold dollars to gain acceptance. Small business can seldom afford the money or time to introduce something radically new.
From a perspective of lower risk, a copycat business or a business with only a modest twist or two in its operation is a much better bet than an entirely new idea.
Other Business Mistakes and Misconcetions
- Failure to Prepare a Business Plan
- Myth-- A New Business Must be Based upon Uniqueness
- Overspending
- Momentum
- Starting a Business for Reasons other than Market Demand
- Entering into Partnerships without Clearly Defined Roles
- Not Putting Partnership Agreements into Writing
- Organizing A Small Company as a Large Company
- Misconception-- A Product Can Be So Good, It will Sell Itself
- Not Understanding Your Product's Benefits
- Believing That Experts Have Magic Answers
- Not Pricing Based on Benefits to Buyer
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