Do entrepreneurs overvalue their companies and products?
According todevelopers tend to overvalue their innovations and customers undervalue innovation and it’s this disconnect that is fundamental to why innovative start-ups are failing.
Here’s what happens:
- inventor becomes obsessed with their product or idea
- they quit their day job and devote EVERYTHING to their invention (including their savings)
- they fail to due their market research
- potential customers are not impressed by the innovation and don’t want to spend “that much” to purchase the product
- inventor is broke with no market to sell to, but a really pretty prototype
Yes, it’s hard to see things clearly when you’re engulfed in the day-to-day, so to be successful, inventors and entrepreneurs need to recognize their weaknesses and learn to rely on outside objective advice.