Do I need a personal trainer or a personal researcher?
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| See the View from the States archive for Mark Dollinger's view on aspects of doing business in the United States.
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Our ideas, concepts, and products are a bit like the first paper airplane we built as children. We were convinced that they would soar into the stratosphere, but the cruel reality was that most of them went crashing into the ground (and landed at the teacher's feet).
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One of the first reality checks we need to take before heading off into the wild blue yonder is to assess the various barriers to entry.
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The following highlights some of the more common barriers that should be evaluated before launch.
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| |  | Regulatory environment. Many product categories are subject to governmental regulation prior to their introduction. Some of these requirements can be quite stringent, such as those related to introducing an ethical pharmaceutical. The regulatory process in this area is so time consuming and expensive that it almost always necessitates a pharmaceutical company as a strategic partner. On the other hand, the regulations for many medical devices are much lower and are often successfully conquered by start-ups.
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| | | Patent review. While we may think that our product or concept is novel and breakthrough, a review of patents associated with key elements of the product may identify a competitor that has already staked a claim in the same arena. Of course, protecting key aspects of the product or concept with patent applications is a very important step.
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| | | Industry map. The manner in which distribution occurs in an industry needs to be identified. Supply chains vary widely among industries and, in some industries, distributors or agents are being eliminated (disintermediation). Addressing companies at the proper positions in the chain is critical for sales success.
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| | | Target customer review. Identifying the key companies with whom you are interested in partnering is essential before you launch. If these partners are not interested, or already have competitive products or services, you have identified barriers to entry with which you must contend.
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| | | Competitive review. Map your competition. Know your competition and the quality of their offerings. This will help you focus your efforts.
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Your ability to identify and analyze the various barriers to entry will provide you with a critical first read on the viability of your project.
Successfully overcoming the barriers to entry often depends more on knowledge and less on how high you can jump.
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If you have any marketing questions that you would like me to address in a future column, or have a comment about this column, drop me a line.
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Mark Dollinger
President
Trendlines America
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