You’ve got a business idea – but will anyone buy your product?
The biggest reason why startups fail is that they have not validated who will buy their product, how much they will pay and how many customers they will attract.
It can be quite straightforward to answer these questions but still many entrepreneurs do not. Often this is because they are focused on building their product.
As an entrepreneur with a business idea you should spend time developing an understanding of what problem you are trying to solve, who has that problem and how they currently get around that problem. Identifying ‘early adopters’ (those people with the most need for a solution to the problem) is an important first step towards validating the market opportunity.
Once you have validated who your target customers are, (and this could be quite a niche market), then it is necessary to develop a strategy to reach those customers. This will be a period of research to find out as much as possible about the needs, desires, activities and behaviors of your customer. When you have a detailed understanding of customers then you can prepare problem questions and conduct interviews to explore more deeply and to test some assumptions and strategies. Eventually, you should get some evidence that a proportion of these people will buy your product (when you’ve built it) and how much they will pay for it.
There are processes, templates and other helpful tools for doing all these things. There is also a helpful hands-on workshop, Startup 20/20 which looks at 20 key questions you need to answer when starting a business.
For more information and to register for a free workshop near you go to Startup 20/20.