This Article is About
new comers
fear of failure
buying habits
innovative ideas
new businesses
important things
Why Are Business People Afraid Of Innovation?
Join 1000's of Authors at StreetArticles Today!

Why Are Business People Afraid Of Innovation?

The most profitable and long lasting businesses are coming from an innovative idea.

Coming either with an innovative product (we can think here at Apple) or with a new way of serving customers (Dell or Amazon are probably the most famous examples), innovative businesses are in most cases the winners on the market.

Yet, the overwhelming majority of new businesses coming into the market are ‘me-too’ businesses.

Replicating a business model that worked for others is the easiest way which many entrepreneurs are choosing.

Instead of entering the market with an original and relevant competitive advantage, they prefer to try to be cheaper, faster or simply better than others.

A very old business law says that the higher the risk, the higher the reward.

Knowing to evaluate risk and to minimize it is one of the most important things entrepreneurs should master.

Fear of failure makes most entrepreneurs being reluctant in promoting innovative ideas. They think that if no one came with something similar before, it means that the idea cannot work.

And they prefer to take a successful business model and offer to their prospects what they are used to purchase.

What these entrepreneurs don’t realize is that sometimes this way can be more risky than it looks like.

When a new company tries to beat their older competitors in price or in time to market, the probability to succeed is very low. The companies being for longtime in the marketplace have more resources and are able to even afford to lose a little while to eliminate the new comers.

A small new company will never have the strength to support a price war.

At the same time, entering the market with no competitive advantage and doing only what everybody else do, will bring in the best case a very small profit.

By bringing on the market something different than others a new company risks to be ignored by people having established buying habits.

Here comes the role of research and communication.

Research helps to test the idea before launching it on a small group of prospects to see their reaction.

Then, the most important part of the marketing strategy is how the idea is communicated. A new idea should never rely on sales. The demand for the new product or for the new way of purchasing it should be created before launching the business.

There are a lot of marketing tactics helping to successfully launch new ideas on the market.

Putting in place wise pre-launch campaigns draws prospects’ attention and awareness about the new idea coming into the market.

In this way, the future customers are prepared to receive and try it.

Researching the target customers in advance significantly reduces the risk.

On the other hand, a successful launch can secure a long lasting profit for the new company, profit which would never happen to a ‘me-too’ business.

Remember that business is not a lottery. It is a project and like any other project it should be carefully prepared in advance and planned.

So, if they want to be profitable, entrepreneurs need to find ways to overcome their fear of failure and dare to be innovative. The best way for them to do it is to learn more and get inspiration from successful businesses.

Street Talk

I think you're spot on! Great article!

  about 1 decade ago
You May Also Like
How To Increase Profit Through Innovation: The Case For Creating Your Own Online Learning Service
How do you increase profit through innovation? Sit down and relax! I'm writing to you today to share the case for creating your own online service. As a small business owner you’ve got expertise. Share that expertise. Use it for creating your own online service. How? I'll tell you how.…
By: Cynthia Ann Leighton in  Business  >  Innovation   Apr 01, 2012  
  Likes: 2

How To Turn List Building Into Fun Innovation
How do you turn list building into fun innovation? I keep reading complaints about list building. Yet when I think about it, how to turn list building into fun innovation feels like the gist of the complaints. Maybe complaint's too strong a word? Basically there's resistance to building a list.…
By: Cynthia Ann Leighton in  Business  >  Solo Professionals   Aug 21, 2012  
  Likes: 5

A Street Party – A New Innovation, A Result Of Writing Articles
As I sit late at night and ponder the future of writing articles, an idea, a new innovation, a name given to some of the commenting. A Street Party, on Street Articles, I love the terminology, Joan's idea, a name for some of the banter that takes place when commenting…
By: Rob Ainslie in  Writing and Speaking  >  Writing Articles   May 30, 2012  
  Likes: 7

Ipad 2 - Apple Still Ahead Of the Game With Some Excellent Innovation
Remember the first Apple Mac? I do, still got it, it was hilarious, big old mouse with one big button, nothing like the PC's of that era. And it didn't work, the models didn’t sell and people all but wrote Apple off, I did. More fool me. Now look at…
By: jopearse in  Computers and Technology  >  Personal Tech   Mar 16, 2011  
  Likes: 2

You Dont Have to Sell Your Beats to Major Artist to Get Major Money
Do you really need to sell beats to major label artist to make some real money? Absolutely not!! Think about how many major label artist there are making serious money right now. Actually you can probably count them on two hands, but most of them are the usual suspects from…
  Likes: 4

The Law Of Attraction – Organized Planning – The Sixth Step To Sucess
In his book, Think and Grow Rich, Napoleon Hill wrote a whole chapter about organized planning, because it is an essential and most important step to success. There is an organized planning behind all successful ventures and all successful people. However, you will notice that people who fail in a…
By: Sylviane Nuccio in  Self Improvement  >  Achievement   Aug 08, 2011  
  Likes: 2

The Law Of Attraction for All Affiliate Marketing Newbie
What really is the law of attraction and how does it play out in affiliate marketing? I had earlier hated affiliate marketing due to the antecedence of some marketers. While some really do care enough to play by good ethics, you still come across marketers that are out to swindle…
  Likes: 0

Ecommerce is Your Link to Building A Huge Success Story
eCommerce is a huge link for your home based business. Obviously, there are many areas involved in the building of your own business but eCommerce will fit nicely as the main focus of your story. Our goal is to expand your success story for the world to hear and see…
By: Don Monteith in  Internet and Businesses Online  >  Ecommerce   Dec 13, 2011  
  Likes: 0

Local Mobile Monopoly – What Does it Mean for an Internet Marketer?
I am sure you’ve heard the expression “don’t put all your eggs in the same basket”. Well, that expression is very handy when it comes to internet marketing. Let me tell you why in this article and what Local Mobile Monopoly has to do with it. Are you relying on…
By: Sylviane Nuccio in  Internet and Businesses Online  >  Podcasting   Apr 06, 2011  
  Likes: 2

Simple Designer Wedding Dresses
Elegant is what defines a good wedding designer dress. Many women love designer dresses not only because of their sexy nature but also the sense of style they give. Of late we have witnessed all sorts of agencies promising to deliver the best designer dress for you. Some genuine others…
By: Peter Gichuru in  Relationships  >  Marriage   Feb 25, 2013  
  Likes: 0

Keyword Tool for Analysis
Many people tend to focus on putting up a website to earn income from the internet. They seem to think that as long as they have a website they are going to make big bucks. And when they do not earn a dime they become disillusioned. Some people are lucky…
By: Juliana1 in  Self Improvement  >  Personal Growth   Apr 06, 2013  
  Likes: 2

Network Marketing Has A Long History Of Leading the Field
How many home based business owners are in the Networking industry? A bunch, that's a given, and more folks are joining various programs on a daily basis. Usually, new comers are introduced to the product by someone already in the business. Expansion usually comes from referrals or introductions made by…
By: Don Monteith in  Home Based Business  >  Network Marketing   Jan 15, 2012  
  Likes: 0

Why I Like Affiliate Marketing Through Article Marketing As An Online Business
It’s been three years since I started dabbling in affiliate marketing but only took it seriously as a business in January 2011. It is a great “set it and forget it” model depending on which strategy you use. I mostly use article marketing. Here are reasons why I like this…
  Likes: 0

5 Reasons To Pre-Order Battlefield 3
The release date for Battlefield 3 is set, and EA have some exciting news for those early birds who want to prepare for the big day. I cant wait for the release, and cant stop thinking about it so have come up with this list of the top 5 reasons…
By: Harry John in  Gaming  >  Online Gaming   Jun 27, 2011  
  Likes: 0

My Apple In Ear Headphones Review
The following is a review of the Apple In Ear Headphones with Remote and Mic. The Apple In Ear Headphones are a set of higher end canalphones that claim to offer a better sound then the stock earbuds that come with iPods and iPhones. This isn't that hard to beat,…
By: Marko Hamilton in  Shopping and Product Reviews  >  Electronics   Mar 26, 2011  
  Likes: 0

Article Views: 1949    Report this Article