A recent conference has shown that from numerous case studies companies that do not involve their senior management as much in developing new products generate 80 percent more revenue. Entrepreneurs can avoid the beauracracies requiring them to satisfy the beauracratic requirements of people who know nothing about developing a better product and have not researched the problem well enough to make a competent decision. As an entrepreneur, you can be part of this process.
That being said, entrepreneurs have a few disadvantages that are working against them. The biggest factor is lack of resources. Most innovative entrepreneurs find ways to develop their products successful. The problem is that many are not realistic about whether or not their products have a good screening process (refer to my previous article on developing a good screening process). The flaw of not being part of an inefficient beauracratic process is that they do not have other people to make them aware of potential pitfalls in their product innovation process.
This is one of the reasons why solopreneurs are often not successful. For those who are trying to go it alone and do not feel comfortable networking (which is not recommended for entrepreneurs but it is done) there are other options. Outside ideation firms provide advice to any company on what products are likely to be successful. Research has shown a dramatic increase in value for companies that use these in their product innovation strategies.
It is most important for entrepreneurs to learn from their mistakes. Doing so can almost double their revenues their new products. It can be difficult to keep this in mind when it results in a failed venture, but is a valuable learning experience for all entrepreneurs. We all make mistakes and must learn from them. This is a lesson that large companies sometimes have a hard time learning as they became stuck in their traditional mindset and refuse to deviate from their long-term strategy. One of the advantages entrepreneurs have over larger competitors is that they are more flexibly and can easily adapt to change.
Innovation comes naturally to most entrepreneurs. This is something that needs to be cultivated so that they can develop products that can more readily address the problems their customers are facing.
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