Underestimating costs can happen in various areas, including:
1. Product Development: Creating a product often involves more than just the initial design. Costs can arise from prototyping, testing, and iterating based on feedback. 2. Marketing and Sales: Many entrepreneurs think that a great product will sell itself. However, effective marketing strategies and sales efforts require significant investment. 3. Operational Costs: Daily expenses such as rent, utilities, and employee salaries can quickly add up and are often underestimated. 4. Legal and Compliance: Legal fees, permits, and compliance with industry regulations are essential but frequently overlooked costs.