Ask yourself why many winning business ideas do not turn into start-ups and subsequently successful businesses?
What do you need today for an entrepreneur to start a new business?
95% of start-ups fail in the first 3 years of activity!
With this information, I do not want to throw you down, but to confront you with a fact and also to give you the information to prevent this from happening.
Sometimes, when you launch a start-up and make marketing mistakes, the market doesn’t give you a second chance.
Having winning business ideas does not mean starting a business
Why do startups fail?
Did you not design the product or service correctly?
Aren’t you proposing it to the right people?
When you find yourself in the situation of having to ask yourself these questions, it may be too late, even if you can find solutions.
For this, it is necessary to resolve these points before starting a business and not later.
Too often, aspiring entrepreneurs exchange people who are part of their environment, therefore friends and acquaintances for the target market.
When you launch a new product, it is undoubtedly very useful to immediately receive feedback from the market.
The problem is that in most cases the first to get in touch with your company are the people closest to you, who almost always do not fit into the target audience.
When you launch a startup, you have to strive to avoid taking the “advice of friends and relatives” for good because for one reason or another they will be distorted by emotional factors.
Marketing for a startup is not marketing for a structured company that has been on the market for several years.
Is there a method to turn winning business ideas into successful businesses?
Obviously I cannot predict every single detail of the market in which you are thinking of doing business, of the strength of your competitors and of your ability to make the right decisions, but there are always valid rules that will pave the way and provide you with a solid foundation to start …
There is no business if there is no problem to solve.
Identifying the problem that afflicts a certain number of people in a given market is the necessary condition to carry out an entrepreneurial project.
Only when you have identified one or more problems present in a specific market niche, which a group of people intends to solve, will you be able to think about the product, the price, the communication and all the other marketing tools.
Learn to listen to the market correctly
Listening to the market does not mean taking at face value all the claims that people make.
People very often don’t do what they say, this is one of the reasons why I don’t believe in market research proposals in university courses and in Masters in Marketing.
I think it is much more useful to listen through the network and observe how your future customers are currently solving the same problem that you are going to solve by launching your company.
In other words, before entering a market, carefully study the dynamics and decision-making processes that are the basis of consumption choices.
Here are some questions that can help you clarify this …
How the problems that my company will solve tomorrow are solve today?
Who are my customers for tomorrow buying from today?
Why do they buy from this company?
What are the rational benefits that drive them to buy from one company rather than another?
Fully understanding this point, also through the use of these questions, will allow you to lay the foundations for a strategy that is consistent with the market.
Make the product
Once the problem is found, create the product and answer these questions immediately …
Is the product you are placing on the market consistent with your corporate brand?
Will it have a strong impact on the lives of the people you are going to serve?
Will these same people be willing to buy the product because it really solves their problem?
A product for a specific target
When you enter a market you must do it with strength and authority.
Authority is a position that is obtained only through specialization, that is, by offering a unique product in a specific category of products and not using the “chi coio coio” strategies.
This approach, even more so in the case of a new company, allows you to save useful resources that you will need to use in the flagship product.
During the initial phases, it is good to introduce more versions of the product and then discard those that do not produce turnover and concentrate communication on the product that generates revenue.
This point is very important because it is the cause of many malfunctions of Italian companies, which insist on keeping their stores full of stuff that nobody buys, only useful to keep busy areas that could and should be exploited in other ways.
But that’s another story …
Entrepreneurial ideas: Before starting your own business, learn to communicate
Launching a startup without a proper communication strategy makes no sense, so being a mini-guide I will list three points you can follow to avoid making mistakes.
1) To whom you communicate
The goal of communication is to provide valid reasons for your target to buy what you are selling.
As already mentioned to my students and written in some articles, it does not matter who they are and where they live, what their passions are and how they spend their free time, but what are the mental processes that guide their purchasing choices.
Only then can you use the right levers to conquer them.
When you choose a consultant, one of the many aspects that can help you get an idea of who you are dealing with, it is the system that knows and can teach you to build the profile of your typical customer.
Don’t look at the price, but the benefits that your startup can derive from valuable advice.
2) How they make decisions
Each person goes through precise steps before buying something.
Having established that your product solves a problem, there are other steps to overcome.
It is at this precise moment that your potential customer will find himself or herself in the position of having to choose between your brand and that of the competition.
The stronger your startup brand and the positive perceptions that people associate with you, the more likely they are to choose your products.
That’s why I will never stop repeating it: the brand first and foremost.
3) Observe people’s reactions to your communication
People are literally devouring content, but they use different ways to use it.
So when you enter a market it is important to test not only what you communicate and to whom, but also in what ways.
Forget who says videos are the most effective way to communicate.
In business there are no rules that are always valid and not always winning, original or innovative business ideas are enough to do business.
You must test, just so you will understand if in your case the best medium through which to communicate with your customers are videos, posts, newspaper articles, podcasts, or maybe everyone.
To start and run a business you need a project and a strategy
A start-up is not only a good idea, but a long-term project.
Businesses fail because they are not designed using professional systems that support the entrepreneur from the conception of the business idea to the market entry.
The success of a company depends on the correct planning and execution of an idea.
The mistake most aspiring entrepreneurs make is to confuse the concept of enterprise with the concept of product (product concept – business concept).
The product is the end result of a design cycle that aims to achieve one or more business objectives.
The first operation of an entrepreneur who intends to manage the development of a new idea with professionalism is without any doubt the analysis of the main problem and the sub-problems that he intends to solve through the business activity.
Once you have identified the problem you will have to turn each sub-problem into a goal, with the aim of turning them into opportunities.
In the next phase, you will need to clarify all the activities necessary for the development of your business project.
Subdividing the business process into different activities allows you to have greater mastery and clarity not only on the objectives to be achieved but also on better resource management.
As I mentioned earlier, the product is the end result of a careful analysis of the problem of a specific group of people.
Solving a problem differently from the competition and consequently perceived as better by people, make your business ideas an excellent business opportunity.