The new entrepreneur who started business with many dreams may be easily wavering when encountered with obstacle at the initial stage despite the making of mind on the possible risk.
If it is the “me-too” business, It is not difficult to assess the direction whether to go ahead or step back but if it is the new business based on the of-of-frame innovation, how to correctly assess its future course? Some people may choose to stop the business but some entrepreneur dig deeper into his own grave without knowing.
The important marketing tool used to asses the feasibility of this kind of business is the Diffusion, the measurement of how wide the new product or service was tasted for market’s recognition.
An undeniable fact is that SMEs lack budget on PR or advertising, therefore the ability to broaden the base for the recognition of its product or service is rather limited. The most difficult task is to deal with the customer psychology. The demands of consumers in different market layers are not the same.
Denim jean trouser for example, started as the trouser for gold mine laborers but hundred years later was wear by the person who goes against the strict social rule.
Geoffrey Moore, the Silicon Valley marketing guru divided customers into five groups – innovation enthusiastic, fast-learning, logical, price sensitive and passive buyers with market share of 2.25%, 15%, 34%, and 15% respectively. The success of the business is depended on the changing of the first group into the third and fourth group.
The task on the moving of customers from one group to another group is the unavoidable mission. There are many strategies to do this, however it is crucial that the entrepreneur should not feel discouraged when the business stand still. Reflect on the cause of the problem and try to understand the situation.
There are various factors influencing the business expect the capital fund. Don’t hurriedly waste capital fund otherwise you will fall faster into the pit.