Starting a business is an exciting adventure. We’ve worked with many people who are getting ready to launch their brand. One of my initial questions is: do you have “proof of concept”? Sometimes they give me a strange look, but more often than not, they tell me the story of the origin of their product or service—when they came up with the idea, what were the circumstances, what that “aha” moment was like.
A proof of concept is the realization of an idea that demonstrates its feasibility, or a demonstration in principle, whose purpose is to verify that some concept or theory has the potential of being used. Basically, are people going to buy your product? Do people want it? Will they pull out their credit card to purchase it?
As you contemplate the answer to those questions keep these “must-haves” in mind:
Not Your Family and Friends
If your family and friends are encouraging you to “take the risk” and move forward with your idea…beware. Make sure your idea passes the “stranger” test. You’ll need to find the target audience your product is designed to sell to, and find out if they are interested or would purchase your product
Why a Better Mousetrap?
There’s nothing wrong with designing a better mousetrap—something that solves a problem in a new and unique way, just make sure it really does what you promise. There has to be a legitimate reason your target audience will actually purchase your product.
Plan Your Initial Investment
You have to spend money to make money—this is a simple but true concept when starting a business. Right up front, be realistic about how much money you are willing and able to invest in your business. Understand the components like legal fees, marketing costs, design fees. Set a budget and decide where to allocate your finances. Decide where you are going to cut corners and where you need to make a significant investment. Remember, we live in a great time for start-ups, considering all of the possibilities with Social Media Marketing!
The reason why so many start-ups fail is they have failed to plan out these basics. Our advice is to think it through, don’t be hasty, talk it out with some experts who are not family members! (sorry, Mom & Dad)