No one else is selling those products or services that we have in mind, and we have the talent, knowledge, partners, and passion to turn them into a profitable business.
No one else is selling those products or services that we have in mind, and we have the talent, knowledge, partners, and passion to turn them into a profitable business. However, we present our project in competitions of entrepreneurs, we talk with investors, even with other entrepreneurs and we can't get anyone excited.
What may be failing? As in 90% of cases of novice entrepreneurs, you have a good invention idea, but not a developed business model. This means, in a few words that you don't know how you are going to produce or how you are going to sell. That you don't have basic information about costs, sale price, and profit margin. You don't even know who your competition is.
Understanding the difference between two very different concepts is essential for you to move forward with your project. But more importantly, you are able to move from the idea to the business with a solid model, which becomes the guide for every step you take in the future. And here we explain how to do it.
1. Measure the opportunity
The entrepreneurs are often so enamored of their invention idea that they forget to confirm the actual interest of your market, or what competition will face. And then they start with businesses that in the end do not go beyond being self-employed, or have no economic viability.
In this first step, you have to answer any questions and get to work hard to get the answers you need. What is the market plan that you are going to attend? Who is your client? (Is it a niche or is it a mass market?) What will be your value proposition? Is that differential going to put you ahead of the competition? What is the size of your target and what percentage of total sales can you aim for? Can you grow organically or will you need strong capital investment to start?
According to what the current market players are doing, will the cost in marketing be high or moderate? What are the trends that are moving the sector and which could you get on with your current resources?
2. Define the pillars of the model
This is the time to establish what resources you need to bring the idea to reality. And of course, to do it in a unique way, attractive to your customers and profitable.
Establish the characteristics of your product and patent service; what will be the production, sale, and delivery to consumers; and what resources are you going to need? That is, you have to work on your list of supplies, services and suppliers, and in the steps of each operational process.
As you will see, they are only three steps but an exhaustive job. The last is to build a minimum version of your product or service and do the first tests on the market. That will allow you to confirm the interest in your proposal, that you are offering a tangible value, that the price is attainable for your consumers but that at the same time allows you to generate a utility.
And above all, you will obtain valuable information about your customers' consumption or use experience, and you will be able to make the necessary adjustments before formally starting with the sales.
Validating your product or service is also essential to confirm that your suppliers are the right ones, contact the first potential customers with a specific proposal, seek alliances and join forces (for example, with other small suppliers in your same sector) and, in case If necessary, keep looking for partners.