When ideas flow faster than cash, entrepreneurs need to channel their enthusiasm for new business ideas into a structured process to assess the potential success of that idea as start-up business. In our article Start-Up Series: 7 Step Guide to Assessing Start-Up Success we promised a series of articles to help those fortunate to have an abundant flow of ideas to work out which ones to put their time and money behind.
To illustrate the importance of step 1, refer to the history books or think back to the nineties where you would have found Sony reigning supreme in the portable music player market. If you wanted to listen to your music on the go back then the market leader was a Sony Discman. It was reasonably portable with very good sound quality, however it also had restrictions. The key ones were:
- they were prone to skipping when bumped
- you had to carry CDs with you if you wanted a variety of or lots of music to listen to
- you had to change over those CDs to access more music
- you had to buy the CDs from stores when you wanted new music
Then in the early 2000s along came Apple with their combination of the iPod and iTunes to solve these issues for the music loving public. Although they were not the first to market with a portable digital music player their overall package was a solution that the public were looking for, even if they didn’t realise they needed some elements of it yet. Apple had clearly identified and forecast the problems their product solved and reaped the rewards when they went to market.
The first step therefore to assessing that next great idea is to identify and clearly articulate what problem is being solved. If we don’t understand the problem in detail, then the decisions made and the actions taken next may be flawed which could lead the business down the wrong path. The work here will also form a part of the basis of the communication material used in the go to market strategy.
Once the problem is defined in a way that is easily and clearly explainable then the next step is to identify if your target market realise that they have this problem. If they do, then your job to sell the solution is easier.
If the market does not know that they have this problem, then you will need to have a marketing strategy that includes educating your target market on their problem before you can then begin to sell them your solution.
We encourage you to follow our Start-Up Series of articles to work through this 7 step guide to assess if one of your ideas could be a start-up success. If you want to delve into all 7 steps in one sitting, please download our Guide here. For assistance with any of these steps, please contact Matthew Beasley on 3218 3900 for a no obligation discussion.
Please note that this publication is intended to provide a general summary and should not be relied upon as a substitute for personal advice.