If you’ve been doing research on how to build a startup or a guide to entrepreneurship, you’re bound to come across articles advising you to build a hack prototype or splash page to see if you have potential consumers. Rather than going through the pain of creating a logo, brand name, color scheme, HTML code, mockups or other circulated startup suggestions, engineer a short research on the idea and competitor analysis for a quick return. Two reasons why you should give it a shot:
See if the product already exist:
Wouldn’t it suck if you went around bragging about a great idea you had just to have your heart crush because someone beat you to it. First, shame on you for bragging, but that is a quick way of seeing if it’s out there. Instead of losing face, just dive into Google for patents, failed predecessors, or any Big Dogs.
Identifying the “Big Dogs”:
Through a competitor analysis, you can see who you’re up against, that there is a validated market (assuming the Big Dogs did their homework), and how you will compete with them if you decide to go with it. By understanding who is Player 1, you can figure out your value proposition in order to steal their points. After all, you are not there simply to be Player 2.
As a tasty dessert, here are the PROS of going with this method:
Potential pivot and undiscovered market. Your research can uncover a new value proposition to land you a few points on the scoreboard that the big dogs didn’t fill. Another plus would be gaining insight to a different idea that would be more worthwhile than Idea #1. Of course, the best products are Blue Ocean ones with a real potential market.
Waste less time on building soon-to-fail business. By unearthing the drawbacks of proceeding with the original idea, you can save headaches on building a website, constructing the market research plan, actually conducting the research, communicating how great your product is, why they need it and how much dollars it will take to convince them.
A case study would be how I decided to pursue my venture in Datelytics. I wouldn’t be making it if there was a company who gave the whole shebang, an unfulfilled category or potential market. After finishing my Google research in a week, I was able to construct a better argument as to why Datelytics would beat my competitors, a pitch to test my hypothesized target and stronger value proposition.
How do you decide to pursue or abandon a business idea? Share your thoughts below or tweet us @genYize.
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