When entrepreneurs have a product that just does not seem to work, we either ask how can we tweak this product, or say we need new business/product idea. When we tweak the product and it still does not work, we revert to needing another business idea. Many times you do not need a new business idea and you do not need to tweak the product. What we need is a business opportunity. But how?
The first thing that we do when we create a business is understanding the demographics. But we neglect the pscyhographics of our markets. Partly because it is a difficult and costly thing to do. Entrepreneurs think our business is the best thing since sliced bread, but the fundamental thing we need to know is, “will the customer buy”. We must learn that it is not about us and our product and service, but the intersection between our products/service and pscyho-dymanics (Believed-Value) and demographics of the market.
When you understand those three components, it’s all about delivery. At a the most fundamental level, customers will buy when it solves a need or problem in a way that is better, faster, or cheaper than what someone is currently offering. This makes them feel positive about buying form you. A more detailed analysis will reveal that customers buy:
- If they truly enjoy the product features and utilization
- if they feel you differ significantly from the competition
- if they want to switch brands
- if they feel you are worth switching brands
- if they felt motivated to buy during the advertisement
- if they have disposable or discretionary income
- if they are the end-user
- if they are quick decision-makers
In this light, you must try to address as many of the “Big If’s” as possible when demonstrating value. Where we go wrong is in truly understanding the relationships between the initial questions: What exactly are we going to sell, Who exactly going to buy, and Why exactly will they buy.
Here are some examples of customer-created value:
- My email course will give the laid off worker the tools to start a successful service based business in a week!
- Busy moms are guaranteed to lose 50 pounds this year after trying my 10-diet raw food program.
- After reading my book “Conquering the Playa” desperate chics are guaranteed to finally seduce the hard to get guy!
- Maui Lifestyles Coaching Program will help the established entrepreneurs grow their business to $15,000 a month!
In each of these examples, the product directly identifies who they are talking too. It also indirectly demonstrates how they are different from the competition. If your customer is looking at your product, you better believe they have found your competitors as well. Lastly, it tells the customer exactly who is going to happen. It eases the customer’s tension. Within a few seconds of a customer’s first reading of your offer, they begin to wonder “why am I reading this” or ” what will this do for me”. You must answer this in your value proposition.
Typically, we focus on first on what we are going to sell then to whom we are going to sell it, but the “why” they are going to buy it gets neglected. This is what we must focus on to be successful. In fact, I’d venture as far as saying you have to know why someone will buy the product to determine who will buy it and what you will end up actually selling. A customer’s reasons why they’d buy may differ from another group’s reason to buy. If one group has a louder voice, they might end up suggesting product modifications. So, in sum, when you have explained what favorable value your business will bring to the right customer, you have created a business opportunity. You don’t always need a new business idea. But if you resort to seeking a new business idea, be able to identify how this business idea will interact with consumer values. Once you understand this, you have a business opportunity.
