Overvaluing Product Ideas Can Lead to Failure

Do entrepreneurs overvalue their companies and products?

According to Jonathan Lambert developers 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:

1. inventor becomes obsessed with their product or idea
2. they quit their day job and devote EVERYTHING to their invention (including their savings)
3. they fail to due their market research
4. potential customers are not impressed by the innovation and don’t want to spend “that much” to purchase the product
5. 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.