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Starting a business?Have you done your research?
Here are 10 easy questions for you to test your ideas.
Ask yourself these.
You’ll feel more secured about taking the leap.
Baby Distilled Thread
1/
Urgency.
Do people really need or want your product right now?
E.g.
A travel package during Covid is of low urgency.
Face mask is of high urgency.
Urgency.
Do people really need or want your product right now?
E.g.
A travel package during Covid is of low urgency.
Face mask is of high urgency.
2/
Market size.
How many paying customers are there in your market?
E.g.
Market for pet makeup is small.
Market for coffee beans is big.
Market size.
How many paying customers are there in your market?
E.g.
Market for pet makeup is small.
Market for coffee beans is big.
3/
Pricing potential.
What’s the highest price of your product that your prospect is willing to pay for?
E.g.
Can’t sell a candy for $100.
But many would pay top dollars for limited edition sneakers.
Pricing potential.
What’s the highest price of your product that your prospect is willing to pay for?
E.g.
Can’t sell a candy for $100.
But many would pay top dollars for limited edition sneakers.
4/
Cost of customer acquisition.
How easy it is to get a new customer?
Include the cost for sale, marketing, effort, creation of products.
E.g.
it doesn’t take much to sell an ebook.
But it takes a lot to sell a car.
Cost of customer acquisition.
How easy it is to get a new customer?
Include the cost for sale, marketing, effort, creation of products.
E.g.
it doesn’t take much to sell an ebook.
But it takes a lot to sell a car.
5/
Cost of value delivery.
How much to create and deliver the value you promised?
E.g.
Selling an ebook online is low cost.
Inventing a new gadget costs millions.
Cost of value delivery.
How much to create and deliver the value you promised?
E.g.
Selling an ebook online is low cost.
Inventing a new gadget costs millions.
6/
Uniqueness of offer.
How is your product different from your competitors?
How easy it is for others to copy you?
E.g.
There are many cafes.
Only Apple sells iPhones.
Uniqueness of offer.
How is your product different from your competitors?
How easy it is for others to copy you?
E.g.
There are many cafes.
Only Apple sells iPhones.
7/
Speed to market.
How fast can you make your product to sell?
E.g.
Designing a logo may take a week.
Building an apartment takes years.
Speed to market.
How fast can you make your product to sell?
E.g.
Designing a logo may take a week.
Building an apartment takes years.
8/
Up-front investment.
How much will you have to invest before selling?
E.g.
You just need a laptop and internet connection to write an ebook.
It costs a fortune to open a restaurant.
Up-front investment.
How much will you have to invest before selling?
E.g.
You just need a laptop and internet connection to write an ebook.
It costs a fortune to open a restaurant.
9/
Upsell potential.
Any secondary offers you can sell to paying customers?
E.g.
Apple makes tons from selling dongles.
Get a door mat and you don’t need another one.
Upsell potential.
Any secondary offers you can sell to paying customers?
E.g.
Apple makes tons from selling dongles.
Get a door mat and you don’t need another one.
10/
Evergreen potential.
After you created your product, how much additional work you need to do to continue selling?
E.g.
Personal consultation requires on-going work.
An ebook just needs to be produced once.
Evergreen potential.
After you created your product, how much additional work you need to do to continue selling?
E.g.
Personal consultation requires on-going work.
An ebook just needs to be produced once.
11/
If you have positive answers for all questions.
You have a promising idea.
If not, you might want to re-evaluate your idea.
Be honest with yourself.
Plan accordingly.
If you have positive answers for all questions.
You have a promising idea.
If not, you might want to re-evaluate your idea.
Be honest with yourself.
Plan accordingly.
12/
These are key learnings from Personal MBA by Josh Kaufman.
You can check out my blog on more distilled learnings on business, marketing and writing.
Join the Distill crew here.
Much love,
Mike http://Distillinstitute.com
These are key learnings from Personal MBA by Josh Kaufman.
You can check out my blog on more distilled learnings on business, marketing and writing.
Join the Distill crew here.
Much love,
Mike http://Distillinstitute.com
