Currently, most of you starting a technology product startup make the mistake of focusing too much on the product and forgetting other equally important parts. As a result, the Product is not completed yet but the company has already fallen into financial distress. Sometimes when the products are completed, they are no longer able to keep up with trends or market needs. Being a startup is doing business, but focusing too much on products and technology, accidentally forgetting other things that need to go hand in hand. This is not the right way to start a business!
Current status and reasons for startups that only focus on products and technology
Current status today
The current situation of startups focusing only on products or technology is a common problem in Vietnam and around the world. Startups often focus on developing new products and technologies, but ignore other factors such as the market, customers, and business strategy.
Startups focusing only on products and technology can lead to several risks, including:
- The product does not fit the market: By focusing only on products and technology, startups can ignore the needs and wants of the market. This can lead to the product not being accepted by the market.
- Difficulty in business development: Without a clear business strategy, startups will have difficulty developing their business. This can lead to the startup being unable to profit and grow sustainably.
- Financial distress: Every product or technology has to go through a research and development process, spanning a period of time with significant costs and risks. Only after numerous iterations and refinements can a completed and polished product or technology be brought to the market. Consequently, this has led to startups not prioritizing investments in brand building or other crucial business plans.
The risks of focusing solely on products and technology
“Technology is an important part of a startup, but it’s not everything. A successful startup needs a good product, a good team, and an effective business strategy.”
– Eric Schmidt, former CEO of Google.
What is the cause of the above problem?
There are many different problems leading to the above situation, some of which are outstanding as follows:
Lack of knowledge and experience: Startups are often young individuals with little business experience or expertise limited to their previous specialized fields. They may lack the knowledge and experience to understand the importance of factors beyond the product and technology.
The mentality of “liking to do” rather than “liking to sell”: Many startups have the mentality of “liking to do” rather than “liking to sell”. They only focus on developing products and technology, without paying attention to selling their products and services to customers.
Pressure from investors: Investors are often more interested in technology and products than other factors. This causes startups to focus on product and technology development to meet investor expectations.
Some suggestions to overcome the above problem
In the process of working and interacting with many different startups, jFoundation would like to suggest some solutions for startups to refer to as follows:
Learn and learn: Entrepreneurs need to learn and learn about marketing, sales, and customer care. You can take courses, seminars, or seek advice from experts.
Recruiting experienced personnel: Startups can recruit experienced personnel in the fields of marketing, sales, and customer care. This will help startups develop these elements more effectively.
Experiment and learn from failure: Those who are starting a business need to experiment and learn from failure. You should start small and test different marketing, sales, and customer service strategies.
Solution when startups only focus on products and technology
Through the last article, we hope that those of you who are starting a business will have a more multi-dimensional view and avoid encountering unwanted problems on your journey to success. Stay tuned to Website jFoundation Regularly to update the latest information!
jFoundation provides resource pieces that make building technology products and businesses easier while also providing business models that help startups develop sustainably while still capturing trends.
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