10 steps to making the dream a reality.
This blog post is for you, if you are an aspiring solopreneur or entrepreneur. If you have a special talent or big idea and don't know how to get started, read on. A great business idea starts with a problem and a potential solution. So, what problem do you think you can solve and how will you go about doing it? The first step is to define the problem and make sure you have a solution to that specific problem - not the other way around.
What does that mean? Well, we all face frustrating situations that leave us wishing there was a better way. We all have experiences that have a profound impact on our lives. Things we get passionate about and that spark new ideas. But not every idea is a business idea, and we must be careful not to wind up with a solution that’s looking for a problem.
Problem definition is critical and is a strategic process. Accurately defining the problem is often half the battle won. The problem must be based on a real need felt by a significant number of people. One that will improve their lives in some way that saves them time, makes them more money, gives them a better-quality experience or creates more convenience. In other words, it should fill a gap and generate unique value for a specific group of people, that they should be willing to pay for.
People may have unmet needs but don’t really know how to fulfill those needs until they can see or touch a potential solution. Most people cannot imagine a solution to a problem that they may be facing until it becomes something tangible and they can interact with it. You are probably familiar with the famous Henry Ford quote, “If I’d asked them what they wanted, they would have said a faster horse.”
So how do you go about making sure that your idea is going to generate value and consequently earn money. Here are some strategies to identify a real-world problem that needs solving, define it clearly, validate it early on and create a plan to help you get started.
Get clear on your business idea
Identify an unserved or underserved need.
Define your business category.
Create a profile of your ideal buyer/customer.
Clarify your Unique Value Proposition.
Craft your manifesto and messaging.
Gauge the potential market size.
Analyze the competitive landscape.
Create your business model canvas.
Plan your finances.
Write your business plan and pitch.
Step #1 - Identify an unserved or underserved need
There are events throughout history that have served as catalysts of major change and progress. The pandemic of 2020 was one such event. And what felt catastrophic and bewildering at the time also created new opportunity, advancement, and accelerated the pace of progress in innumerable ways. Such events also test human ingenuity. Technology, health care, food, education and finance are just a few industries that have been permanently disrupted and consequently this has thrown up many new problems that need solutions. Identify a growing macro trend that points to an unserved or underserved customer need. Tap into published sources of research and insights that will validate a particular trend that is of interest to you and presents a business opportunity. Think about whether you have a skill or talent that can fill a specific need and how you might monetize it. Work solo or find like minded individuals with complementary strengths to work with you to bring your idea to life.
Step #2 - Define your business niche
Use strategic planning and analysis tools like PESTEL and SWOT to help you narrow down the trends and capture a range of environmental factors that may influence and impact your business idea such as political, economic, social, technological, environmental and legal. They will also help identify opportunities as well as potential risks. At this point it is very important to define your business niche accurately. Getting this wrong could seriously skew your planning and direction as you’ll be analyzing the wrong data. Even if the category does not exist and you intend to create a market for your product or service, it is necessary to define the category precisely, to understand potential opportunities and risks.
Step #3 - Create a profile of your ideal buyer/customer
Building and visualizing an ideal customer profile or a buyer persona will help you design and tailor a solution that meet their specific needs more efficiently, effectively and quickly as possible. It is critical to have an in depth understanding of your customer both from a demographics and psychographics perspective. Gathering data such as their geographical location, age, income, gender which are more quantitative in nature and then layering that up with more qualitative data such as their interests, preferences and lifestyle related information will give you important clues with regard to their ‘real’ needs. It will also help you understand their decision-making process and various stages of a typical customer journey. Use audience analysis tools like SparkToro to for customer insights.
Step #4 - Clarify your Unique Value Proposition
What specific value does your idea generate, how does it solve a real-world problem in a unique or better way? Value can be created in different ways namely convenience, productivity, profitability, image, experience. This must directly match the product or service to what the customer will gain from them. Define how exactly your idea is distinct from other similar solutions to the problem. Base your solution on meeting a specific need not just fulfilling a desire. In the words Harvard professor Theodore Levitt, “People don’t want to buy a quarter-inch drill, they need a quarter inch hole.” Is your product or service a painkiller or a vitamin? How does it translate to gain for your ideal customer? Distilling this down to single-minded value propositions will give you clarity and direction through the solution development and delivery process.
Step #5 - Craft your manifesto and messaging
A manifesto is a well-articulated statement of who you are, what you stand for, your purpose, values and your beliefs - as an individual or as a company. According to a study from Accenture Research, 63% [of customers] are buying goods and services based on companies that reflect their personal values and beliefs. Furthermore, 74% crave transparency into how companies source their products, ensure safe working conditions and their stance on important issues. It is a powerful tool to attract the right audience and establish a connection with them. The audience you are targeting should see themselves in you and relate to you. A manifesto sets the tone of all your communications and interactions with both your customers and early employees if you have any. Many small companies and startups ignore this piece which leads to problems with effectively selling your value proposition and onboarding of employees and customers. Here are some examples of inspiring brand manifestos.
Step #6 - Calculate the potential market size
Market sizing involves calculating the Total Addressable Market (TAM), Serviceable Addressable Market (SAM) and Serviceable Obtainable Market (SOM). Calculating SAM and SOM as mere subsets of TAM in percentage terms may not be the best way to go. They are calculated in terms of a Dollar value rather than the number of potential buyers and will give you a clear indication if a big enough market exists for your solution. It will help determine if it is worth investing in the idea and how much you should invest in terms of time and money at different stages of development especially if you are pitching to potential investors. It will also lay out the direction and timing for scaling and growth strategies.
Step #7 - Analyze the competitive landscape
Stake out the competition – both obvious, non-obvious and potential future category disruptors. Studying the other players in the market helps with defining market share, pricing, market entry and penetration, market positioning as well as distribution channels and differentiation. Use comparison tables to capture snapshots and quick reference cheat sheets of competitors’ products, services, features, benefits, value propositions pricing any other aspects that might have impact on your product development or operations. An interesting take on competition is Peter Thiel’s book Zero to One where he says ‘Competition is for losers’ and outlines how brands need to out-compete the other players to dominate their niche because when there are too many competitors in a market, then none of them make money - well worth a read. And now, there are many tools that help keep track of competitor activity like Similarweb, Ahrefs, SEMRush, MozBar to name a few.
Step #8 - Create your business model canvas
A business model canvas is a one-page reference document that succinctly captures key information about your business model including product, revenue, channels, partnerships etc. Business models can evolve and expand over time but at the outset it is crucial to be very clear on the parameters within which your business will operate. The chances of losing focus and going down too many different rabbit holes are high, as the idea is still nebulous, so having a clearly articulated business model canvas will help you keep you focused and on track. There are many different business models to choose from and it’s important to pick the right one for your idea. You may be starting an online shop or freelancing as a consultant. You may need a complex tech solution to support your business or a relatively simple delivery mechanism. A business model canvas is a very helpful tool to provide direction and aid decision making.
Step #9 - Plan your personal finances
The main purpose of being in business is to generate money whether it is for profit or not so have your financial planning in place is key. You will need to make a realistic forecast of your personal financial needs. This is a personal budget plan detailing your living expenses and what you need to cover from the business or other sources. It should set limits to how much you spend each month. You will need to consider start up funding, financial projections, capital and operations costs, sales, cashflow, profit and loss and risks. You may also want to research the tools and technologies that can help you run your finances seamlessly depending where in the world you are, what payment gateways, tax and compliance issues you need to be aware of and choose an appropriate solution. It really boils down to the nature, size and growth ambitions of your business.
Step #10 - Write your business plan and pitch
A business plan is an essential part of a self-starter’s toolkit. It forces you to set clear goals, commercial objectives, product definitions, roadmaps and timelines and track your progress. The most important purposes of a business plan are to set the strategy for growth, determine future financial needs, attract investors and make good business decisions. It also helps you develop a well thought through pitch deck if you are looking for investors. Depending on the nature of your business you will need to create a business plan that outlines your course of action in the short, medium and longer-term.
Here's my blueprint for getting started with making your business idea a reality.
This is just the beginning
Getting really clear on your business idea and plan is the essential foundation of your business. And you'll feel like giving up at times. But don't. There will be people around you that can't see what you see and will tell you that you're are crazy, irresponsible and just dreaming. Well that's ok. Do it anyway. It takes time and energy and thought and action to make an idea a reality. And sometimes you just have to do it on your own. Well you can hit me up and I'll share my stories and give you the encouragement and support you need.
If you've found this post useful please leave your questions and comments, share insights from your own experience, or perhaps different points of view. Follow me on LinkedIn and Instagram where I will be sharing more practical tips and content like this as well as free strategy blueprints for business, brand, product and marketing. I’d love to have your feedback. Join the conversation and let me know if you are interested in more in-depth content regarding any of these topics. Share this with your network - knowledge shared is power multiplied.
If you are an aspiring solopreneur looking to set new personal goals or an entrepreneur and needs strategic brand advice or even an intrapreneur who wants to catalyze change within your organization, visit brandcrib.com and leave me your contact details.
Alternatively email me on georgette.kolkman@brandcrib.com. I’d be happy to help.
I hope this year brings you success, prosperity, personal growth and positive change.
Comments