Why and How You Must Create Value With Your Idea
The one towering truth of entrepreneurship is that you need to offer something that fulfils a need. It matters not what that need is. Funding is immaterial. A business plan is immaterial. The most important thing is that you have to fulfil a need and provide value for your customer. Do that, and they will come.
It does not matter what kind of a need it fulfils. Be it a pressing one for clean water access or a superficial one for fun, filling that gap will be the foundation blocks of what could be your future empire.
So how do you start? You start by making a small group of people happy (like the first 100). Identify a receptive niche, offer them something that is 10x better than what already exists in the market (especially for exponential organizations)
, engage with your stake holders, and these early adopters will support you as you build your product up further.
The 5 Whys (Fill A Need)
Sakichi Toyoda developed the technique in Toyota to explore the cause and effects of a particular problem. How it works is that it prevents the asker from making the mistake of making assumptions. Instead, when you are confronted with a problem, for example, the lightbulb won’t turn on, keep asking why instead. When you come to the answer, ask why again. And then continue that process until you reach the root cause. 5 levels usually ought to do it and you will find the real problem not only one specific small problem.
Likewise, when applies to the process of discovering how to fill a gap in the market, identify a current problem or need. Then keep asking why and see if you can pinpoint what you need to do to solve that need.
There are some other helpful questions you need to know the answers to as well, but this is a good start to begin figuring out your product or service.
Being 10x Better
Especially if you are in the Tech business, then Peter Thiel, founder of Paypal, posits that your proprietary technology has to be 10 times better than the current competition. This is because the market is almost saturated in many industries and competitors abound. So as a latecomer into the market, how do you convince the consumers to move over to your thing, and perhaps even paying transfer costs, if you cannot offer them something obviously or significantly better?
10x better. That is a highly ambitious claim, it’s true. But it is always good to aim high and even if you do not reach your ultimate target goal of being 10x better, but are only 5x better for instance, as long as the benefits to your products are obvious and it fulfils a need in the market, you will still be able to get out there.
Keep Things Simple
It’s great that you have managed to figure out how to solve a problem. But now you have to get the message across. People need to know that you’ve solved their problem and how they can get on board.
So you need to communicate your solution simply and clearly. Skip the complicated lingo or tech jargon. At the end of the day, you want your consumers to know just why they should buy into your product or service and exactly what you can give them that they have been missing all this time. Or, how it is better than what they have had all along.
If you have managed to create value for someone, then they will pay you for it. There are many ways to make money out of one creation or one process these days. What is the most profitable aspect of your venture? Or how many revenue sources will it bring in?
Could your solution offer a service to consumers as well as data to companies like Facebook or Google perhaps? How will you charge your consumers? A subscription fee? A one-off charge? Is it a physical product or a digital one? These are all important aspects to consider when it comes time to getting the most out of your venture so that you can invest further and make it even better!