I wonder how many businesses in the Philippines takes the time to do market research before jumping or investing in something. Of the many businessmen/women I met, I know most of them makes their business decisions on rough estimate on their understanding and point of view of the world. It truly helps if they are well informed – like if they read the newspaper everyday. But in case not, sometimes basing your market research on your personal point of view may cause you a potential costly decision.
Here’s some of the common misconception I encounter when trying to come up with a new idea or innovation, or just my general understanding of business.
1. If a business idea or innovation is meaningful to me, it must be meaningful to a lot of people and is a worthy investment.
I don’t think I’ve ever had a friend who ever claimed to be an upper-class Filipino citizen. It doesn’t even matter if they own more lots/houses or cars than the number of family members they have at home; or even if they drive a different sports car in a month. Everyone will just claim that they are middle class or lower class – period. I think it’s good not to brag or be arrogant, but if you are applying the same mentality in your business decisions – you might be in trouble.