Products and business go hand in hand. Winning the product race can give you the boost to survive the everyday battle in the business world.
The world of business is a place of opportunities. When you’re knocking the right doors, you are selling your products. Improving everyday activities for better results or a comfortable lifestyle is where many modern industries are growing. It’s the product and service that supports the business not the other way around.
Product Vs Business: The Real Battle
While there is a school of thought that still prefers building a company before the product. However, statistics also say that 80% of the new businesses fail in the first five years of existence. This is mainly due to the incompetence of the business to generate revenue and profits.
When there is a product fit, the market sucks the product in and generates the revenue required. So building a company after you have a successful outcome in the market that’s already making income is quite ideal.
Many companies are ghosts as their product don’t give anything new to the market or solves problems better than the existing products. These companies sell some units over a year and manage to stay in business barely. Their growth is nowhere in sight.
The products with a real differential in the market attract a lot of attention for better or worse. Not having uniqueness is a slow poison that ultimately leads to failure.
Technology is making its way into many business models. Platforms like Amazon or Flipkart can provide valuable information on how the market might receive the product and the potential customers.
All of these don’t require a company. Having a company without a product can be a liability.
Gamble: Are your chips In the right places?
Having a company before you have something to sell is a common gamble that new entrepreneurs take while starting the company. It could go haywire as the consumer market is a dynamic, evolving place.
Even the giants such as Amazon, Microsoft have integrated a feedback mechanism into their service in a way that it keeps constant track of opinions or suggestions of the consumers after years of debugging and improvements. It keeps the customers happy as their grievances are immediately resolved.
The Product: Improving Lives
The purpose of a product or service is to make everyday life more comfortable. Many businesses are based on this fact, taking “Uber” as an example. It’s an innovative business model that bridges the customer and cab driver through a mobile platform. Food Panda, Swiggy are using a similar model for restaurants.
While these services are built around our basic need of transportation and food, it’s slowly becoming an indispensable part of our lives. It’s essential for the service/product to have a purpose. Determining the scope and value in the initial stages will provide a necessary direction and an idea about the consumer base.
Products give the opportunity for scalability, mass production and a systematic business process. Business models can be developed around them.
Customers: A Clairvoyant Approach To The Market
It’s not an easy task to attract customers. Drawing a person to invest time or money in your idea takes a lot of effort, planning and understanding about what your customer needs. Proper research of the market will help understand the needs of the consumer.
If you’re a startup, the goal is to look for a specific customer with a particular problem that they face. It will give a direction to the development team on the product.
It’s important to find the right consumers during the initial stages of the product development. When we have a specific consumer in mind, the pitching of the idea becomes relatively more comfortable compared to a product deals with a broad spectrum of customers. The management of resources is difficult while dealing with a broad consumer base.
Getting some early funding and some sponsorship in the development phase of a product can save a massive amount of revenue. Having a specific customer in mind will give the development phase focus on the problems that need to be solved. It will improve the market value and effectiveness of the product.
Many startups don’t often realize that the products are not the business; it’s something that supports the industry. So having a company with no product or services will have no consumers. A company with no customers will not have any business.
Communication: You need to talk buddy!
It’s really awesome when we spot the potential opportunity in the market or just get an idea that could solve a problem better than the existing way. Many entrepreneurs should be consumers first to understand the different scopes of their products.
Total understanding is imperative to the success of a start-up. It requires a lot of courage and patience to build something from scratch. The proper communication with the customer may just be the key to the door that blocking your growth.
The success of the product can be exponentially increased when we point to the point of differentiation in the market. The part of the product that makes it unique. This uniqueness is conveyed to the consumers in a clear, concise and compelling manner.
When there is a failure to communicate, it means that the business is suffering.
The impatience to succeed can be our downfall. It’s a real slow process to build a business from the bottom up. You need to treat it like your kid sometimes. It requires you to build up character traits like originality to really sell in the market these days.
Tetra Noodle provides technology consulting services in most of the cutting edge technologies.
We offer Fractional CTO Services, where we offer a wide spectrum of Software and Cloud Computing Consulting Services; Business-Technology Consulting, Internet and E-Business Consulting, System Integration, Custom Application Development, training & workshops from global software experts and application re-engineering. With a single-minded focus on bringing success to your product, we work collaboratively with you throughout your product’s lifecycle. Our expertise, experience & skills ensure that your idea or product would be validated, developed, tested & delivered to be an investor and market ready.