house-money-capitalism-fortune-12619-largeFunds & resources play a very important part in the success of a business. Without sufficient funds & resources, a business will struggle to even come up with a new product, let alone launching it properly into the market.

Here are some of the most highlighted aftereffects of insufficient resources on the new product development process of a business.

Poor Quality of Execution

No matter how brilliant an idea is, it still means nothing if your business doesn’t have enough money or human resources to deliver it to the customer in its entirety. Your customers will be disappointed in your business because you failed to deliver what you’ve promised in the first place, and they can only receive a portion of the value they pay for.

Poor quality execution can also result in other costs, with “fix and repair” costs headlining the bunch. This cost is resulted from activities that will require re-work because they were done in haste in the past to meet timeline with limited resources.

Time to Market Lengthens

The Problems With Insufficient ResourcesManufacturing products takes time – a lot of time if you are a start-up or a small business just starting out. You will need sufficient funds to invest in production machinery and enough money to get more human resources to keep up with demand from customers.

If your business doesn’t have enough money and resources, your products can’t be made on time, which will consequently lead to a slower time to market that can cost your business a fair number of business opportunities.

First to Market/First-mover Advantage is Lost

Even though the ‘first to market’ title is not a guarantee for success, your business will still benefit greatly from it. This advantage promises huge profits margins and a monopoly-like status that can make all the differences to the future success of your venture. Therefore, if you don’t have enough funds & resources to become a first-mover in the market, you are missing out on your chance to accelerate and dominate the field your business is operating in.

The Problems with Insufficient ResourcesSimpler Projects Will Be Favoured

Your staffs will choose to work on projects that are smaller, easier, and faster to complete, which only deliver low value, instead of projects that actually deliver high value to the business. The project ideas submitted by your staffs will become simpler and simpler over time to make sure that more can be done with less.

This is not really a bad thing because some ideas, even though very simple in execution, can bring on great impacts. However, this requires a lot of efforts from your staffs to come up with ideas that can follow this guideline, which can lead to staffs’ dissatisfaction.

Team Morale Deteriorates

As stated above, your staffs will be under constant stress to find new ideas that can accomplish the impossible: fit the limited resources of the company and still can deliver great results. Deadlines will be missed, pressure will mount from time to time, people will start to blame each other, and team morale will decline sharply.

If you need help with product or service development, or struggling to come up with effective business strategies for your business, contact Maverick Mentoring NOW to receive a FREE 1-on-1 business consultation that could help accelerate your success!