Startup: Do you want to find a business idea that doesn’t exist yet? Then as a founder, you have to deal with the three biggest hurdles. What problem does your idea solve? Who is the customer for your product? And: How does your product or service work?
I am always asked what questions founders should answer about their company or their business idea. This applies in particular to the pitch in front of investors, interested parties, or in a startup competition.
Startup: The Problem
Founders should first answer the question about the customer’s problem and which the company is solving for him. That sounds very easy at first. But I often find that the answer to the question about the situation is very vague.
Sometimes I have a problem that, based on the answer given, I cannot say why it is a problem that the founders want to solve. So I am already lacking in understanding. It isn’t easy to talk about a suitable solution if you cannot see it at all.
Therefore, founders should carefully consider the problem that they will solve with the product or service of their company. It is essential to be as specific as possible. If you want to find a business idea, you should formulate the problem as precisely as possible.
The danger here is to be too superficial at the point at which one has difficulty describing the problem precisely to “not linger too long.” However, having a clear view of the problem and articulating it is explicitly critical to understanding its business idea.
In the second step, founders should answer the question about the exact target customer. It is essential to identify this precisely based on specific characteristics. It is not enough to say that “our product makes sense for all women.”
Because to stay with this example: there are many different “women.” Which individualized “woman” exactly fits the product or service offered?
When it comes to the question of the target customer, it is more about showing which specific characteristics and differentiation criteria the desired customer should have. Only then can it be understood why this customer fits the product or service.
No Waste Of Time And Money
Finding the answer to the question about the exact target customer can lead to the founders noticing that their product or service does not match the presented customer at all and that they have to address other customers or customer groups.
However, that is not a problem. Instead, this prevents potential customers from being senselessly addressed with a lot of effort, time, and money, who will never warm to the product or service.
Finally, founders should show that they understand exactly how a customer uses the product or service and which exact benefits this use will bring to the customer.
The founders may have an idea of the specific use. It is also possible that this deviates from the customer’s opinion. If you want to find your business idea, you should therefore observe the reaction of customers to the product or service.
In addition, founders should clarify whether they and the customers are talking about the customer needs to be satisfied by the product or service. Finally, they should try to imagine new uses to enlarge the scope of their product or service.
I have to say repeatedly that it is not easy for founders to describe what they offer in detail. This applies in particular to the differences in incomparable offers from competitors.
I, therefore, recommend arguing as precisely and pointedly as possible. Founders should assume that their offer is only absolutely unique in the rarest of cases.
Clarity about the problem addressed by your offer, a precise idea of the target customers, and an understanding of your product or service’s advantages help sharpen the description of the request.
In addition, the differentiation from competitors and their offers may then become apparent. And finally, it will make it easier to highlight your USP.
When The Business Idea Has No Future
Of course, it can now happen that the founders realize that they are not addressing a real problem, that the potential customer base is insufficient, or that their offer is of no real benefit.
That is, of course, regrettable. But it can save the founders from senselessly wasting effort, time, and money. And then again, a lot is gained.