Pitfalls in Selecting New Ventures

By : Blaine AmanteRobert Boyd

ContentsLack of objective evaluationNo real insight into the marketInadequate understanding of technical

requirementsPoor financial understandingLack of venture uniquenessIgnorance of legal issues

Lack of objective evaluationDon’t fall in love with an idea for a product or

serviceLack of scrutiny for design or projectSubject all ideas to rigorous study and

investigation

No real insight into the market

Managerial shortsightednessNot understanding life cycle of the product or

serviceNo product is instantaneously profitableTiming is criticalAction taken too soon or too late result in

failure

Inadequate understanding of technical requirementsFailure to anticipate technical difficultiesEntrepreneurs cannot be too thoroughProblems delay time and increase costs

Poor financial understandingUnderestimating the cost leads to problemIgnorance of cost due to inadequate research

and planningIt is not unusual for estimates to be less that

half of what is eventually required

Lack of venture uniqueness

A new venture should be uniquePerformance of service should be superior to

competitive offeringsProduct differentiationCustomers awareness of difference

Ignorance of legal issuesLegal requirementsSafe working environmentReliable and safe products and servicesPatent, Trademarks, and Copyrights