(1) If I make something, I would eventually find a buyer. I can work hard.
(2) If I want to make something, I will find an investor who wants to support me.
(3) If I sell something, I will just add a portion for my profit.
These are extremely naive. Let me explain.
If you make something, you will never find a buyer. This could be because one of the following reasons:
(1) You won't make enough quality and hence can not control price against competitors;
(2) Dirty competitors will muddy the water in the channel.
(3) No one needs new things, really.
(4) People won't know you have something to offer, because the channel is so noisy.
These are but a few of the most common reasons.
Most people would say "I have an idea, I want to find an investor". Well, today's investors are not dumb. If you only show a promise, no one would bite. People need you to show that you have validated the products and validated the sales, before they decide if your business can make them the desired returns.
The "I will add my profit on top" is a fantasy. There are people with money who would gladly lose money to compete with you until you drop out of the scene. There are people who would sell fake products and buy off all the bad scores from the web store management team.
If your offer is one of a kind special item, you may be able to sell a couple of items at your desired price, but that is it.
These three things are what many first time entrepreneurs all believe in. They keep trying to find the buyer, find the investor, and find the profit margin, that do not exist at all.
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