Don't Fall for These 6 Deadly Myths of Startups

Image via Flickr by Side Wages

E-Mythreported

1. "A great technology will lead a successful business." In fact, both customers and investors often avoid the perceived high risk of innovative technology pitches. Customers don’t like new learning curves or dealing with unstable solutions. Early adopters love new technologies, but mass market customers want solutions, not technology.
   
2. "If we design a great product, investors will find us." Technologists forget that investors are buying a chunk of the business, not the product. Every solution needs a business team first who knows how to market, distribute and support the product. Investors want proof of a business model and real customer revenue, as well as a product.
   
3. "Business work should start only after the product is done." Business experts recommend that entrepreneurs start their marketing first to confirm that they have real customer interest and an appealing product concept. In addition, good marketing and support plans can take as long as product development. Do both in parallel to be timely.
   
4. "Marketing is a necessary evil to sell weak solutions." In today’s world of information overload, everyone relies on marketing and social media to find solutions to match their needs. Even the best technical solutions often fail due to lack of good marketing. For innovative solutions, marketing is the education consumers need in lieu of experience.
   
5. "Paradigm-shift solutions have no competition." The real competition to a new paradigm is the old paradigm. The first airplane faced major competition from trains and automobiles. If there is no competition, investors see no market, meaning no customers, slow growth and big marketing costs. Mention paradigm shift only with other technologists.
   
6. "Free solutions are the way to build critical mass quickly." For many customers, free implies no real brand value, so loyalty is low, and support costs can still be high. Thus you need deep pockets or generous investors before advertising or alternative revenue streams can kick in. Premium pricing with exclusivity is often a better business strategy.