Business owners face a lot of dubious points in their ventures. Right from when they have to determine what is best for their customer base, to making rigid calls regarding business policies, there is a lot of brainstorming involved.
It is therefore logical for the entrepreneur to minimize risks and maximize efficiency. While the latter also depends on product specifics, the former’s onus is mostly on the owner. It only makes sense for the business owner to not make the following mistakes to ensure smoother ventures while testing their product.
1. Unnecessary Incentivising
Look, taking risks is part of owning a business. In fact, in the bigger picture of life, taking risks is an elementary philosophical concept that adds more meaning to life altogether. In more reasonable terms, risks come with rewards, and the case isn’t any different in business.
That being stated, as a logical businessman, you should not take unnecessary risks while testing out your product. For instance, dropping a massive price drop on a newly-released product, especially if it is a prototype model, might have negative effects on your customer base.
While your customer base would want the best value for money, succumbing to offers like Black Fridays makes them doubt your promise in your product. It is like you are trying to incentivize sales by giving into means like lucrative discounts right off the bat.
Sure, you might have windows to drop prices after seeing how the market reacts to it, but doing so at rudimentary stages is redundant. Make sure you know how to read the market and when to use incentives as a means to boost sales.
Also check: test automation solutions
2.Equal Distribution of Investments
Wait, how is this a silly mistake, right? After all, keeping all eggs in the same basket is detrimental, isn’t it?
Wrong. As a business owner, you must know how to compartmentalize your investments. Think about it—great car manufacturers like Lamborghini do not splurge money on advertisements, but instead use it on R&D. As a business owner, you must know where to spend, and where to be silent.
This is particularly useful if you own a software company. As a business owner pertaining to this niche, you ought to compartmentalize your investments in say, software solutions instead of billboard advertisements.
If you’re developing a mobile app, let’s say related to accounting, you’d better invest in a bug reporting tool like Shake SDK instead of splurging on other aspects, especially if that involves unnecessary advertising. After all, your software will sell only if it has less bugs and crashes, only if it does its job of accounting as desired; and not if it is flashy on TV.
Knowing where to invest is something that most business owners fail to understand. While most prefer paying for ads, use other means like social media instead. Know where to cut costs, and where to pay more to get your product polished.
3. Holier Than Thou
The Apple of yesterday has always been recognized as a visionary brand, one that never succumbed to the pressure of audience bases and statistical numbers. The Apple of yesterday did not rely on social media and its analytics to make sure their phones sell, because they knew what everybody wanted. The Apple of today, however, takes feedback and has established a social media presence.
So, what changed? The answer is simple. With the arrival of competing bodies like Samsung and OnePlus who always remained in touch with their fans, Apple had to follow suit just to keep up with the competition and their sales.
This is a very good insight for newer business owners. While selling your product, you have to make it a rule to accept feedback from your customers to see what they like, to see what they would be receptive to. After all, it is the customer who makes sales possible for you. Using social media can be a powerful tool here. Take polls, ask questions. If needed, take surveys, especially if you are testing out a product.
Sure, you might be the most exuberant company to ever exist, but not staying in touch with your customer means not being grounded in reality. If you don’t know what your buyers want, they will not have any incentives to buy your product in the first place.
Remember that as a business owner, you are at the mercy of your customer base. While taking pride in your products and flaunting it is a different thing, taking a “holier than thou” stance is an asinine mistake you should not make.
Testing a product can be a tricky affair. The risks involving businesses are tremendous, and as a business owner, it only makes sense to prevent silly errors from commencing altogether. Following the aforementioned ideas should help you, but the onus is ultimately on your product itself.