starting a business<\/a>\u00a0for the problems of today, or whether the product will extend beyond the crisis. They have to understand the long term potential of their business.\u201d<\/p>\nThese four questions can help you assess if you truly have a lasting edge, and how best to use it to gain a definitive advantage over your competitors.<\/p>\n
1. Am I solving a new problem?\u00a0<\/b><\/h5>\n
As market dynamics change, you want to concentrate on where\u00a0consumer\u00a0needs are heading. Essentially, to use a\u00a0hockey\u00a0metaphor, you want to be skating toward\u00a0where the puck is going, not to where the puck is right now. One of the perks of being a startup is that you’re more agile \u2014\u00a0you can pivot faster than big companies and shadow the movements of the puck more easily.<\/p>\n
According to\u00a0Accenture,\u00a0consumer trends\u00a0surfacing at the moment include people shopping more consciously, buying from local retailers\u00a0and using digital tools to connect with one another. With these in mind, think about what difficulties customers might face \u2014\u00a0perhaps the cost of sustainable goods is too high, maybe local retailers don’t offer home deliveries or people have new doubts about privacy online.<\/p>\n
To determine whether or not your product can offer a solution to one of these new problems, test yourself: Can you clearly explain your business idea\u00a0and why it\u2019s valuable in today\u2019s market? If you\u2019re struggling to articulate the value of your product, it might be because you haven\u2019t yet made it fit snugly into a defined niche.<\/p>\n
You can refine your business proposal by putting yourself in the shoes of your target market. Empathize with your potential customers, consider how your idea would improve their lives and whether people would miss it if it stopped existing. When it comes to articulating your business’s value to others, don\u2019t be afraid to draw from your personal experience. You might want to explain your own journey and how the product has helped you through certain scenarios.<\/p>\n
2. Am I solving an existing problem in a new way?\u00a0<\/b><\/h5>\n
Some companies will gain a competitive advantage by tackling an existing problem with a novel approach.\u00a0<\/b>Many consumer problems that were around pre-quarantine still need to be addressed, but the way they expect businesses to do so may have changed.<\/p>\n
For example, most consumers believe they will now have to\u00a0reduce their spending on most goods.\u00a0Pricing\u00a0is a time-old pain point; you could solve this problem in a new way by bringing lower or more flexible pricing to the market without compromising on product quality. Already during the pandemic, pricing has been used to establish an advantage across multiple industries. Microsoft Office 365 E1 is free for six months, CTO Academy has reduced its annual subscription by over 80 percent\u00a0and\u00a0HubSpot\u00a0cut package prices by up to 50 percent.<\/p>\n
These discounts are boosting companies’ subscribers and positive exposure. While you may not be in a position to offer cheaper prices than your competitors so early on, you can set yourself apart by tiering prices or having \u201cbuffet style\u201d options, where consumers get unlimited use of your product for a set amount.<\/p>\n
Alternatively, you could switch up your business proposal and strategy to offer customers added value. You could move a traditionally offline product online\u00a0or make your manufacturing and delivery processes more hygienic. An ethical approach is effective too:\u00a0You could focus on renewable materials or supporting local SMEs in danger of going bust.<\/p>\n
For business-to-business products, choosing who you pitch your solution to can be key to demonstrating its value. Multiple people are involved in a buying decision, and each may view the problem through a very different lens.<\/p>\n
3. Do I have a head start?\u00a0<\/b><\/h5>\n
Just because you have a solution doesn’t\u00a0mean you have a head start against your competitors. You need to be able to\u00a0pioneer your idea\u00a0and, importantly, avoid others duplicating your model. It can mean becoming a market leader while everyone else is still figuring out a strategy.<\/p>\n
Can your competitors easily catch up with your product, or will you be the only one with a working model for several months? If your core competitors are big, well-funded businesses, the\u00a0development time will be much shorter, so you should focus your resources on refining development and production. Whatever the playing field looks like, you\u2019ll want to protect your idea legally with an IP or trademark.<\/p>\n
The longer you\u2019ve been developing your idea, the better you can tailor it to be relevant, especially in the new normal. You should embrace the importance of continually validating results and garnering feedback (especially negative feedback) from the very start of your journey. Maybe you\u2019ll gather enough data to discover that the solution you had for stay-at-home moms is also great for middle-aged men living under lockdown. Whatever research you have built up over time will become\u00a0your best weapon in finding product\/market fit in ever-changing waters.<\/p>\n
4. Am I bringing something new to the table?<\/b><\/h5>\n
You \u2014 your network, personal journey and background \u2014 have a unique value that your other competitors lack. If you need to draw out what gives you an edge, first ask yourself: Why am I the best person to bring this idea to life? What has prepared me for this moment?<\/p>\n
Look at the experience,\u00a0connections and resources you’ve built up over the years. Make a list of the people and tools you have that your rivals don’t. Start a conversation with them, update them about your product and harness their expertise to find the best way to break the mold and really innovate in the industry.<\/p>\n
Entrepreneurs who launch before fully recognizing their competitive advantage will struggle to gain real momentum. Start your journey by determining the unique value that only you can bring to consumers.<\/p>\n
Source: https:\/\/www.entrepreneur.com<\/p>\n","protected":false},"excerpt":{"rendered":"
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