No plan (regarding distributing your product)
Without having a way to get your product to the consumer the product will not get into the marketplace which means very little or no sales therefore no profit. By answering the following questions the basics of a plan will be developed:

Who is going to carry this product? What does the network of distributors need? Is point of purchase displays going to be supplied to the distributors/retailers? What about an attractive pricing structure? Will there be promotional programs running for your distributors/retailers?

Not knowing what people "in-the-know" can do for you.
Without having the benefits of industry insiders you will not know what products are wanted in the marketplace. A lot of industries have their own pecularities, finding out the central players are in yours can help get your product known. This also helps you to find out about how products are typically distributed.

Spending too much?
Having enough money or credit to see you through from your idea to selling the product is critical. What should be the typical percentage breakdown for the product process:

• "30-40% Product Development
  
•  30-40% Small production run
  
•  20-30% Selling to your target market"

Start small. Why? Because by taking baby steps you can allow for changes and be able to adapt to new or unforseen market conditions.

Going into too Large a Market?
The bigger the market the more complex the product introduction has to become which entails larger sums of investment to penetrate the market. By choosing to operate in a smaller market your product has a chance to prove itself thereby allowing it to grow slowly. When the time comes to expand or to take on new investment you will be able to show them that your product has a proven track record.

Overlooking the importance of product benefits.
The benefits of your product need to be easily understood. Consumers look at your product for seconds only and the sales people have to understand how the product their selling can benefit the customer.

If your product does not have clear benefits, the only way to make them evident is to: advertise (expensive), or to demonstrate the product (using your sales force).

Inconsistent Sales Attempts!
There is no substitute for hard work and consistent action when it comes to selling your product. It may take up to 5-7 phone calls or meetings to make a sale to a distributor/retailer.

Not recognizing the difference between small and large market places.
Having a plan to deal with movement from a small market to a larger market is important. Have a plan so your product can grow slowly, thus allowing you to gradually step the product into bigger and bigger market places. As mentioned previously, the bigger the market the more money it takes to penetrate it.

Not understanding the significance of product packaging.
This is very important. How your product is packaged creates an image of your product (whether this is a cheap looking or of quality). Ask yourself if the packaging includes the product's benefits. Don't make packaging too complex.

Excessive manufacturing costs.
If your product costs too much to produce and sell you won't make a profit. A rule of thumb is a "product can't sell for more than its perceived value."Another principle is the manufacturing cost should be "less than 1/4 of the products suggested retail price." This figure is suggested to allow for associated costs, such as distributors, retailers, marketing, administration and sales costs, among others. This gives you a chance to make a profit while making the price attractive to your distributors/retailers.

Information and quoted passages taken from "How to bring a product to market for less than $5,000" by Don Debelak.