“Product Market Fit” – This is a sweet spot when your product is satisfying the needs of a target market segment. The result if you find it: Good $$$. If you can’t, you’ll be swimming against the current. So how do we figure out if we have an idea or a business? Here are a few questions to consider.
Can your idea solve a problem that enough people are willing to pay for? You need to understand your customer & their motivations. Solve a big problem & make it better in some way than what exists today. A mistake: inventing a concept (idea), but not actually a complete product that can be put to use & turn a profit.
Can your idea set itself apart from the competitors already out there? If you can’t explain the difference between you & a competitor with ease, you will struggle with marketing & standing out in the crowd. Have a USP (unique selling proposition). This is the factor or consideration presented by a seller as the reason that one product or service is different from & better than that of the competition. In the end just be honest with yourself; what features of your business jump out at you as something that separates you from the pack?
Is your idea so niche that you can’t cover enough ground? Noticing that you can satisfy potential customers is great, but having enough customers that truly matter is critical to ongoing success. A niche is defined as a portion of a market that you’ve identified as having some special characteristic & that’s worth marketing to. Identifying your niche is important, but keep in mind as it evolves it should allow you to develop different profit centers and still retain the core business, thus ensuring long-term success.
The bottom line: There is nothing wrong with starting a company just to pay your bills & not to reach the stars like my friend Mr. Belfort pictured above. The key is recognizing the difference so you don’t waste time & $$$ trying to build castles in the sky when your idea is limited.
-Money Never Sleeps