What You Really Need Is A Market, Not An Idea - article by Paul Finn

[DeletedUser13]

What You Really Need Is A Market, Not An Idea | Paul Finn

Great article, targeted at tech / software business, but can be applied to any industry. Here's some highlights:

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I call this train of thought "Idea Roulette". The wheel of ideas in your head spins and spin and spins. There's excitement in the air as people cheer, cocktails splash out of glasses and someone drops their phone out of pure excitement. The yelling intensifies as the wheel winds down to its next choice. "This is it! This will be the one!" you insist. After all, after a few misses you deserve a big paycheck. And this spin "just felt right".


Much like regular ol' roulette, in the back of your head you it's a gamble and you never feel 100% confident that you know what you're doing. You spin the wheel even though you know very few will find success...most everyone walks away disappointed and with less money and energy than when they started. But it's exciting! It's enticing! Even a little bit comforting. And you have to spin the wheel to win, right?


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Here's the key step to take before you assemble the blueprints for a profitable business. You need to select the audience that you'll want to build a product for. And there's good reason for this: not only will the idea come together after research, you'll know that the next time you build something, it will actually provide value. No more gambling here!


Markets and industries are like people: finicky, very different, sometimes difficult and the attractive ones get the most attention, warranted or not. People operate and navigate life based on their personal values and what their goals are. Similarly, markets and industries have values: things that they want/need/desire to be successful and turn larger and larger profits. If you know what a niche market values, you'll know what you can build to provide more value and how valuable it is. Remember - the more valuable the product or service is to the market, the higher the price tag and more revenue for you.


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Stop thinking ideas and start thinking about your target market. Study the audience and discover what they value. Once you do, you'll be able to build a business that you know will provide value. This is how you make sure you build something people want. Spinning the Idea Roulette wheel isn't how you win in this game. Building something valuable that speaks directly to 500,000 potential customers? That's a much better recipe for success.


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[Hairy Maclary]

The idea of looking for problems before solutions was something I took from MJ's book also. The big issue with ideas I am finding is that there are so many, everyones got them, and you run the risk of business polygamy trying to exhaust them all.

Find a problem, listen to the people effected, then figure out the best solution to fix it. I am unsure if this top down approach will work but we will see.

So today I posted an add on odesk for research into Asia's energy market. Not exactly specific I know but its the closest thing I can think of, besides handing out surveys, to needs analysis.

 

[DeletedUser13]

So today I posted an add on odesk for research into Asia's energy market. Not exactly specific I know but its the closest thing I can think of, besides handing out surveys, to needs analysis.

Have you considered creating a landing page for the topic? Could be useful for market research. Here's an interview with Josh Ledgard from KickoffLabs, he gives some nice insights in there: How to get your first 927 customers | Business Tips

 

[Hairy Maclary]

Have you considered creating a landing page [/url]

Oh nice, thank you so much. I have considered testing a "fake" product/service but wasn't sure which one to pick and how to go about it.

You've just solved the how, hopefully odesk will solve the what!

 

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[mobileordering]

Paul,

An idea breeds market, market suggests and idea. Stats proves the existence and the strength idea and market.

It really is a significant to believe in you before when you see any idea. World do not accept a new idea immediately. You need not create, you need to replicate with a personal flare. The ideas, products, services, and strategies are all there. You just need you to select them up, make them your own with your personal effects, share them with the world.

I would always recommend you of using the statistics to be used as an evidence. It has already been noted that studies in which statistical methods are most useful are those involving measurements with natural variability and lack of perfect replication. It is also the case that most studies that use statistical methods involve relationships or effects that are not obvious to the naked eye, and thus that are not strong enough to be confirmed without large amounts of data. Mobile ordering was what I selected and is working on. Mobile stats were most appealing and contributing to my business. And now, we are Saavi.

Thanks
Phil Talbot
Saavi

 

[Toao]

In the end you will need both - a market (customers) and a product/service to sell. There is market everywhere. What you need is a product or service that generates value and serves a need. If you do so parts of your potential market will buy as soon as they get to know of your product and the need or value in their eyes is bigger than the money you want to get for it.