Here are the design pitfalls I have in mind and will explore here:
- Inventing a new product/service that buyers see no use for that's worth the trouble of adjusting to it - see Doing the Wrong Thing Correctly
- Lacking feature/benefit differentiation that makes the new business compare unfavorably to established enterprises with more experience and customers - see Making the Same Difference
- Assuming the rivals won't copy or surpass every improvement which then results in getting ambushed by the imitators - see Assuming we have no imitators
- Over-estimating increasing revenue and under-estimating soaring costs which yield shortages of cash and loss of ownership control - see Underestimating the cost of growth
- Pricing the offer beyond what the market will pay or so low it fails to cover costs which makes customers wary of being manipulated - see Undercharging the customer
- Attacking incumbent positions that provoke their retaliatory strikes and wars of attrition to quickly eliminate the start-up from the market space - see Provoking the incumbents to retaliate
- Getting a bubble of press coverage that quickly fades without generating customer loyalty and a steady stream of repeat business - see Flaming out before catching fire
- Resorting to pressure sales tactics which results in seller reluctance, buyer remorse and negative reputations - see Creating jobs from hell
- Locking into a long shot trajectory that fails to make adjustments to hit the moving target and steer clear of unforeseen obstacles - see Too smart to succeed
- Introducing a single innovation with no upgrade path which has the effect of destroying the long term sustainability - see Drop kicking our innovation
After writing up all these pitfalls, I took the opposite approach of developing a framework of success strategies - see A process of growing a new venture.
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