Making a Business Out of Your Idea

Technologically savvy Entrepreneurs start their business as they might have a unique product or application. Their understanding of their technology and their belief in the breadth of its superiority over competitors might make them think that success could be a slam dunk.

Entrepreneurs might start out by thinking that way, but their success really depends upon understanding the “business” of their technology.

No one ever became rich by building a better mouse-trap; rather, it is getting that product to the marketplace at a reasonable cost and convincing customers to buy it that leads to success. A tremendous amount of business thinking, planning and execution goes into making an idea a winner.

Answers to questions such as:

  • can the product be made cost-effectively with consistent quality on a mass scale,
  • can the technology be protected from competitors,
  • can it be delivered to the consumer over a wide territory and on time,
  • can it be marketed and sold effectively

and many more are necessary to make a sustainable business out on an idea.

Have you really thought about how to make a business out of your unique technological idea?

Ravi Patel

Published in: on June 11, 2019 at 4:30 am  Leave a Comment  
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Testing the Market

Entrepreneurs definitely have ideas, but then they tend to forge ahead on product or service development at full speed. Is this always a wise course of action? Bias for action is a great attitude, but it needs to tempered with reality.

Testing the market by obtaining validation from potential customers or users before proceeding too far down the path of product or service development is a wiser first step.

It is ultimately the customer that will decide to accept the product or service regardless of how brilliant the idea . If the customer does not buy the product or service, there is no long-term commercial value in the idea. Asking potential users about the idea and its potential features is a great way to test the market and validate the idea’s further development. Customers might even have thoughts and features that the Entrepreneur might not have considered.

There is always the argument that for a revolutionary idea the potential customer might not even be aware of the need, and it is the task of the developer to educate the users. There is merit in this argument; however, it doesn’t hurt to obtain some initial validation of the feasibility of the idea from potential customers.

A solid product or service development process should require some form of meaningful testing of the market by obtaining validation from potential users prior to going too far down the path of detailed design. Do the Right Things!

Ravi Patel

www.patelCFOservices.com