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Many ideas are not scalable and even marketable. There might be diverse reasons which are not limited to wrong timing (which could be too early or too late), crowded competition (that is your idea is already up and running in the marketplace), and non-existent problems. For this stage of product development, founders should employ the Business Model Canvas (BMC), which is an optical strategic management framework for designing business models. Founders must look at the following recommendations: Founders should employ the BMC by writing down what they consider the Key Value Propositions of their ideas. Value Proposition is central to marketing. A company’s value proposition is the entire mix of advantages or economic value that it promises to deliver to the current and future customers who will buy its products and/or services. This should be followed by Key Customers Region (founders must know that they can serve everybody, hence they should desist from describing customers as “All” or “Everybody.
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They must point out specific people they want to serve). Founders must then connect their Value Proposition to a Customer Segment. The outcome is to separate potential customers from hanging customers, which they must let go of. Next, founders must think of a channel for each Value Proposition. There are basic feedback strategies where founders can exhibit their Value Proposition. They include Awareness, Evaluation, Purchase, Delivery and Aftersales. For example, channels for Awareness can be advertisements on websites, TV, etc. The ‘14 day free trial is another popular way to enable evaluation of a product.
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In the journey of idea to product, founders must take into consideration the Cost Structure. This is where they evaluate the cost of production, which includes rents, salaries, laptops, internet, furniture, marketing, license, fees, filing & compliance, sales, Cloud, and chartered accountants. This will help you draft the cost of moving your idea into a large-scale product. Finally, founders must discern possible revenue generation through speculations. They can do this by writing down probable avenues of revenue generation and then measuring revenue capacity over time and the elaborateness of making that revenue source happen. This will help them prioritize one avenue over another thereafter.
Closing Remarks
Discovering the business aspects of your idea as a founder requires in-depth review and enhanced findings of the past, present and future. Therefore, this article has shown that founders must understand the unique value proposition of their ideas and match it to their potential customers and estimate the probable revenues. Finally, moving ideas to products requires building; hence founders must understand the Cost Structure. Featured Image Source: Litmus BrandingGot a suggestion? Contact us: editor@connectnigeria.com