venturcelerator
Entrepreneur Myth #9: Just make it and they will come
I’ve seen great products on the market with no sales or limited sales. Just because you’ve built a better mousetrap, or even the best mousetrap in the world, it doesn’t mean shit.
What most entrepreneurs do not realize (include myself at times) is that product adoption takes longer than expected. If you look at the time line of some of the products invented and then market adopted, it was years or decades before they took off. A simple invention such as the zipper was invented in 1913 but not until 1930 did it gain wide market acceptance. And I’m talking about the damn zipper.
The Internet wasn’t invented in late 1990’s despite what Al Gore may think. It was actually developed by the U.S. government decades before. The computer was invented in the 1940’s but did not take off until the 80’s. The cable started in the 60’s but did not take off until 80’s.
Products or services-- depending on the sector, timing, customer interest and behavior, etc, etc. – take time to launch, distribute and reach wide market acceptance.
You can’t assume that all you have to do is make a better mousetrap and the world will beat a path to your door. I’ve seen lots of inventors or techies with this mental disease. No matter what you build, you have to market the damn thing. Whether you spend marketing dollars or not, you’ve got to sell the contraption or your venture is going down the tubes.
Remember, if it ain’t fucking sold, nothing will happen. When you start your venture, you better develop a sales team (not a marketing team) first or alongside the marketing team. Yes, I know sales is part of marketing but tell that to a successful salesperson that brings the revenues to the table. Product has to be sold – no matter how great it is. You have to have salespeople selling the shit out of it if you’re gonna succeed. One of the flaws I’ve recognized as a venture capitalist is the lack of salespeople on the team in the startup phases. Even Twitter, after raising more than fifty million still doesn’t have a solid sales team.
Distribution is everything. Never forget it.
If your salespeople aren’t getting you distribution (whatever the distribution channels), you’ve got problems, captain.
One of the most important things to consider as entrepreneur or investor is whether the product or service has distribution, or the difficulty of obtaining distribution. For example, in the movie business it’s difficult to get distribution. Producing and financing the movie isn’t easy but getting distribution can be a fucking nightmare.
Distribution is king. And your product is the bitch. Never forget it.
When you’re launching products or services, you have to look at all distribution options: direct sales (includes telemarketing, direct mail, television ads, and infomercials), wholesale, retail and Internet. I’m befuddled how many entrepreneurs underestimate the cost and effort of getting distribution. Worse than that, they underestimate the effort of collecting the money.
If you’re distributing through retail, you better have (1) enough cash to offer terms (for at least net 60 or net 90 or even consignment), (2) multiple products, (3) a generous product return policy and (4) market development funds to launch the product.
If you don’t offer some of these marketing and financial components to the distributors or retailers, then you better be married to someone in the Walton family, if you want to get into WalMart for example.
1. What are some of the entrepreneur myths you’ve learned being an entrepreneur?
2. What do you think; do you need to have a college degree in order to be a successful entrepreneur?
3. Do you have to have a college degree from Stanford or MIT or Harvard?
4. Why did you become an entrepreneur? Was it because of necessity, vision or accident? Was it because you wanted to be the next Bill Gates?
5. When you have made your product or service, how did you launch it? Did you have to put lots of marketing dollars or did the product just take off?
6. How does publicity and viral marketing play out in new product? Did you use those effectively?
7. What is chance of your product being distributed in the marketplace?
Entrepreneur Myth #10: You have to “dress for success” when raising...
SUBSCRIBE to the PODCAST: Entrepreneur Myths on iTunes
What most entrepreneurs do not realize (include myself at times) is that product adoption takes longer than expected. If you look at the time line of some of the products invented and then market adopted, it was years or decades before they took off. A simple invention such as the zipper was invented in 1913 but not until 1930 did it gain wide market acceptance. And I’m talking about the damn zipper.
The Internet wasn’t invented in late 1990’s despite what Al Gore may think. It was actually developed by the U.S. government decades before. The computer was invented in the 1940’s but did not take off until the 80’s. The cable started in the 60’s but did not take off until 80’s.
Products or services-- depending on the sector, timing, customer interest and behavior, etc, etc. – take time to launch, distribute and reach wide market acceptance.
You can’t assume that all you have to do is make a better mousetrap and the world will beat a path to your door. I’ve seen lots of inventors or techies with this mental disease. No matter what you build, you have to market the damn thing. Whether you spend marketing dollars or not, you’ve got to sell the contraption or your venture is going down the tubes.
Remember, if it ain’t fucking sold, nothing will happen. When you start your venture, you better develop a sales team (not a marketing team) first or alongside the marketing team. Yes, I know sales is part of marketing but tell that to a successful salesperson that brings the revenues to the table. Product has to be sold – no matter how great it is. You have to have salespeople selling the shit out of it if you’re gonna succeed. One of the flaws I’ve recognized as a venture capitalist is the lack of salespeople on the team in the startup phases. Even Twitter, after raising more than fifty million still doesn’t have a solid sales team.
Distribution is everything. Never forget it.
If your salespeople aren’t getting you distribution (whatever the distribution channels), you’ve got problems, captain.
One of the most important things to consider as entrepreneur or investor is whether the product or service has distribution, or the difficulty of obtaining distribution. For example, in the movie business it’s difficult to get distribution. Producing and financing the movie isn’t easy but getting distribution can be a fucking nightmare.
Distribution is king. And your product is the bitch. Never forget it.
When you’re launching products or services, you have to look at all distribution options: direct sales (includes telemarketing, direct mail, television ads, and infomercials), wholesale, retail and Internet. I’m befuddled how many entrepreneurs underestimate the cost and effort of getting distribution. Worse than that, they underestimate the effort of collecting the money.
If you’re distributing through retail, you better have (1) enough cash to offer terms (for at least net 60 or net 90 or even consignment), (2) multiple products, (3) a generous product return policy and (4) market development funds to launch the product.
If you don’t offer some of these marketing and financial components to the distributors or retailers, then you better be married to someone in the Walton family, if you want to get into WalMart for example.
1. What are some of the entrepreneur myths you’ve learned being an entrepreneur?
2. What do you think; do you need to have a college degree in order to be a successful entrepreneur?
3. Do you have to have a college degree from Stanford or MIT or Harvard?
4. Why did you become an entrepreneur? Was it because of necessity, vision or accident? Was it because you wanted to be the next Bill Gates?
5. When you have made your product or service, how did you launch it? Did you have to put lots of marketing dollars or did the product just take off?
6. How does publicity and viral marketing play out in new product? Did you use those effectively?
7. What is chance of your product being distributed in the marketplace?
Entrepreneur Myth #10: You have to “dress for success” when raising...
SUBSCRIBE to the PODCAST: Entrepreneur Myths on iTunes
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