Do you have what it takes, financially, to be a pioneer in business? Pioneering means not only starting a new company, but also introducing a completely new concept. There is an old saying that “the pioneers take all the arrows”. When you’re coming up with something truly innovative, there’s a risk that you’ll lay the groundwork, but then others will come along and reap the rewards.
Here are some of the cost issues to consider:
First, there is the cost of your time. You will likely spend a considerable amount of marketing time getting your concept or idea across to people. Some will get it right away, but most leads will take much longer to arrive.
In essence, you will not only be marketing your company, but a whole new industry. You will need to be able to explain the category you are in, not just what your particular business offers within the category. Do you have pockets deep enough to sustain you while your idea catches on?
Trying to do all this through the website is not enough, plus high-end advertising through the web can even work against you.
Second, there is the cost of having to own the category. In the early days, someone else, a copycat, may try to jump on your bandwagon and tamper with it. People who don’t really ‘get’ but try to tweak your idea can cause irreparable damage.
When such copycats get it wrong, there is a ripple effect and they can turn off potential customers forever. Indeed, your idea may be excellent and this new industry may have many merits, but poor execution, in the early days, by another party may kill the idea forever.
That is why a detailed website may not be a good idea. It makes it all too easy for impersonators to read what you’re doing and then get it wrong. As a pioneer, you need to consider the financial costs of owning the category from the start, until you are well established and making money.
Third is the cost of staying in the game for the long term. Even when you start to launch your business, the growth curve may be flatter and growth slower in the early years. Can you survive financially?
Many successful pioneers often have ‘other irons in the fire’: other sources of income, such as passive income from rental properties, or have a spouse who works full time and has a paycheck.
Evaluate these issues before starting your business. While they say nothing can get in the way of an idea whose time has come, if it takes a while to get to that moment, make sure you can stick around for the time.
Copyright Deborah C. Sawyer
