Written by Kelly Juhasz, President, The Knowledge Transfer Company (TKTC) Inc.
In discussions with people in the industry and trying to determine hot topics and trends for digital media producers, recurring issues came up with new projects and new companies. So I decided to write them up. Keep these in mind when applying for grants too!
1. Target audience not defined well enough.
Convince your potential partner that you understand exactly who and why would use and buy your product. If an audience is not well understood, your product features will be off and your marketing efforts ineffective.
2. Not enough money budgetted for reaching target markets.
It is clear, however, that one area where producers feel they can play with their budgets is in the marketing budgets. Make sure you let others know that you understand what it will take to make your project succeed.
3. First year revenue projections too high.
The numbers stated as projected revenue are outrageously high and out of reach for most new products especially in their first year on the market. Being optimistic is good but keep it real and acheiveable. Estimating way too much can work against you. It makes you look unprofessional and out of touch.
4. Failing to link initial product to a bigger or secondary market for future growth and success.
One element that potential partners look for is secondary markets and broader partnership opportunities. They want to see that you have considered what will happen after you have developed and launched. How will you continue to grow the product and stay competitive?
5. Misunderstanding the sales cycle of the market you want to enter with your new product.
Wanting to create a product for a specific market that your research has shown has potential but not pushing your research and planning efforts far enough to truly investigate how the customers in that market buy will end your new business venture before you begin. You must understand how to reach your customer and understand how buying decisions are made.
With a little more work and effort in outlining your new product's audience and market perameters, potential partners will more easily be able to understand exactly what you want to do and will clearly see that you understand how to do it.