Don't fall prey to the same mistakes that plagued sales of the underwater pen. Novelty may be enough to secure a patent, but it is only one part of the venture capital equation. Understand marketing, understand what drives sales success, and take control of your future as an entrepreneur.

1. You Can Make It …
Will Someone Buy it?
Chapter 1.5

2. 1
Rationally Analyzing the Utility of Prospective Products
Another major source of error is a love affair between a
founder and the technology he has developed in the lab. The
number of new and interesting ideas brought into being every year
is astonishing. A field trip to
any respectable college or
university will reveal a
fascinating array of projects
in the laboratories, many of
which, if brought to fruition,
will certainly improve the
NOVELTY MAY BE ENOUGH TO
SECURE A PATENT, BUT IT IS ONLY
ONE PART OF THE VENTURE-CAPITAL
EQUATION.
state of the art. However, a critical error of founders considering
whether to commit capital to a project is to assume that the
novelty and utility of a new technology are both necessary and
sufficient for the success of a start-up.
o one can make any money unless there is a market for the
product, unless people are willing to buy it at a price that
returns a profit to the manufacturer.
N
 Assuming the idea is any good, is there a market for it?
 Is there a market which can be penetrated at a reasonable
cost?

3. 2
Key: Understanding Marketing
Thus, the single most commonly cited reason for failure of a
start-up is the inability to implement a well-thought-out marketing
plan.
 Selling is a matter of airplanes,
hotel rooms, and shoe leather; as
Willy Loman put it, "on the road
with a smile and a shoe shine."
 Marketing, on the other hand,
has to do with understanding the
demand for the product, pricing
strategy, evaluating channels of
distribution, and maximizing
dollars spent on sales.
Moreover, the market has to be
large enough to support an interesting
company. The enterprise with less than
$10 million in sales and nowhere to go
is usually not a suitable target for
venture-capital financiers. Companies of
that size are known as the "walking
dead" in a venture portfolio–too small to
go public and too large to abandon.
Underwater Pen
The classic example is
the pen that writes
under water—
interesting technically
but, as it turned out,
no one wanted to buy
one because no one
wanted to write a
letter beneath the
waves.

4. This valuable information was originally published by Joseph Bartlett, Founder and Chairman of
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