This series of questions are useful to explore any business idea. They are by no mean complete, but by answering them, it will force you to think through some of the most basic elements of a business plan.
To get the most of this exercise you should write down the answers. Just answering the question in you head won’t do it.
If you have just started with your idea, it is normal not to have all the answers yet. Just write your best guess: at this step in the process, all your answers are just hypothesis that will have to be checked sooner or later. When you move forward and refine your ideas, you will have to rewrite some or all of your answers.
1. From the point of view of your potential customers, what problem are you trying to solve?
2. For whom do you try to solve this problem? Who will be your first customers?
2 bis. What is the size of your target market? Is it growing or not?
3. How are your potential customers currently solving this problem?
4. Why is that important for your potential customers to have this problem solved? Is it compelling need?
5. What is your solution for this problem?
6. How is your solution going to be different from what currently exist? For what reasons your customer should want to buy your solution rather than any other?
7. How do you plan to reach your customers? How will your customers know that you exists?
- for any startup ideas that you have, write down the answer to this 7 questions
- post a comment if you have any questions
Try to answer these questions about Facebook….
OK Sergiy:
1) The lack of a central place to share personal news, photos, and to organize events.
2) College students
3) Flyers, phone calls, snail mail
4) Convenience, huge time saver (or waster? =P)
5) Centralized, free, user-friendly social network
6) Ease of use, clean user interface
7) Advertise to college students then rely on word of mouth
The point I was trying to stress – users vs. customers
Hi Sergiy,
do you mean the difference between providing something people can use for free rather than something people are spending money on?
In all the cases, you need to provide value to others in order for them to spend time (or money) on the website, tools, service that you offer them. It is true that solving a problem is just one way to create value, but the only other one that come to my mind is entertainment. I think that in most of the case, even for free sites, you want to focus on solving a problem.
Yes, word “customers” just cut my ear.
“Size of target market” in case of “customers” means different of “users”.
Good point.
Thanks for pointing that