All businesses start with good ideas that we think can solve certain problems. Innovation and entrepreneurship have evolved varying mindsets among the young ones. It has led to improvising business ideas into more structured and defined forms.
Young millennials with their innovations have inspired thousands of other entrepreneurial minds to fuel up with innovative business ideas. With time, we have also noticed how the world changed from having old business owners to young business founders preceding in every competition and bringing glory to their countries.
But that’s just the outer part of the story which business aspirants want to believe. I am not saying that my previous statement is wrong, but not fully right also. And that is what today’s blog is all about.
Not all good business ideas become successful in time. Reports say 20% of small businesses fail within their first year, and the major reason behind it is the lack of market needs.
What may be the reason, you ask? Let’s have a look!
Not all innovations are UNIQUE!
Why do we ask our entrepreneurs to conduct thorough market research before setting up their business ideas? It’s not just a story of good business ideas, it’s a story of creating unique business ideas.
When you have an idea to start with, you must know the competition before joining the ground. An in-depth market analysis saves you from unwanted crises and business shutdowns. You must remember that your competitors are vicious, and they have been leading the market for quite a long time with similar business ideas.
Therefore, a market study can help you understand every major possibility of your business – where you’ll stand in the future and what your market turnover will be.
There’s no profit of bringing out ideas that have been long removed from the market. Maybe your idea has potential, but timing matters a lot. It seems to be a big factor in business growth and success.
Imagine a piece of idea relating to opening a restaurant in a busy locality. This is a good idea but imagine how many of the entrepreneurs had the same idea before you? You might as well see the locality full of restaurants and cafes that are running well enough.
Therefore, this leads you to choose a different and unique business idea that would help you with your profits and recognition. Think of something that hasn’t been yet published properly. Note that this plan will work only when the problems are still prevailing in the market.
When the problems are yet to come in the future you are unsure about, innovating such ideas will be a waste of investment and time.
Unsure Strategic Business Plans
When you have an innovative business idea, you probably think about effective and strategic business plans for your growth. Indeed it is the right thing to launch past market analysis. That’s what business intelligence analysis shows. Any factor that might pull you down is dangerous to deal with when you have no perfect plan.
Although modern marketing techniques and research have made this issue less critical, having an on-paper strategy is not what it actually feels like in providing satisfactory results.
In simple terms, several unpredictable factors might ruin your plans at any time. What if the situations you considered in your project are no longer viable while implementing the strategy? What if the market scenario suddenly dropped down to a loss of economy just like the 2019 pandemic?
The market is never static so is the business world. With constantly evolving technology, trends, and the economy, consumers’ demand keeps rising every moment. What’s important today might no longer be a factor tomorrow.
That said, entrepreneurs need to keep themselves updated constantly about the market variations and trends.
Implementing business planning
This relates to our third point about strategic business plans. Although you have an efficient and positive business plan formulated after extensive research and trials, just doing that won’t start your journey.
You must have the right team for managing the tasks and implementing the right strategies. Team building is an important task for a leader to grow his business.
Human resources must also be one of your top priorities in building a hard-working team and establishing good organizational performance management.
If you have a good and innovative business plan and are thinking of starting your firm, don’t let these factors dissolve your confidence. Think of the other way round. Knowing these problems will help you search for more reasons and strategies to uplift your ideas with uniqueness and reasonable expectations.
Or there’s also different company consulting services that address such issues with a real solution for all entrepreneurs having their own specific business ideas. Expert Mind Solutions is a leading consultancy firm in Malaysia that trains young minds and professionals with business fundamentals and offers business development consultancy for company growth and success.