In the continuing series from Idea Accelerators eBook titled
7 costly mistakes to avoid when launching your next business
Here is common mistake #4.
“No one wants to but it”.
A mistake many new entrepreneurs make is to create the product first, and then sell it.
The correct way is to do your customer research first. Who are your business idea's best customers? Are there enough of them out there to support the business?
In business, there's a wise old saying that says:
“All business ideas are tested on the anvil of the market.”
In other words, the best business ideas are the ones that have been hammered into shape through market, customer, and direct research.
Once you have a clear idea of who your target customers are, beta-test your business directly with them.
As you do more testing, refining your business processes as you go, you'll build more and more momentum leading up to the official business launch
Over the last fortnight talking to guests at startup and venture capitalist events, I’ve frequently heard many entrepreneurs’ say “I’m building an app!”
I’ve replied "That sounds great", and then asked, “What problem is your app solving? and “who is the customer?” At this point, the answers have often been quite thin.
the field of dreams
I wondered if app building has become a
“field of dreams”.
Build it and they will come, like the baseball pitch in the middle of a Iowa cornfield in 1989 American fantasy-drama film.
This approach is tempered by the very sobering predictions
Even counting Apple’s success, many consumers are still not not paying for a whole lot of them. By 2016, 94.5 percent of all mobile apps downloaded will be free apps, Gartner predicts. Says Delaney, the “bounty of good, free” mobile apps has set “high expectations” as to what consumers are willing to pay for.
So what happens to the 99% of new businesses who will not be the lucky Unicorn Billion Dollar Startup.
Consider these success actions:
1. Take another look at your list of business ideas. Can you identify each idea's target customers?
2. To test a business idea, build it up until it has the bare minimum to operate.
3. Find the fastest, easiest, cheapest way to make a sale.
4. See if you can scale operations up for the business idea to eventually sustain itself.