3 Principles to Help Entrepreneurs Go From Concept to
Product. Use these techniques to move past the ideation phase.
Expert Opinion By Sean Kim, CEO, Rype
Starting, running, or expanding a new or existing business has many moving parts that are typically the difference between success and failure. Understanding these components of business strategy and operations is crucial. However, most potential entrepreneurs and business owners get it wrong or are stuck in the ideation phase. Here's how to get out.
Don't invent a solution; discover it
Sometimes, the most unique business idea is the least viable in the business landscape.
When still in the ideation phase, the best approach is to walk backward. Every successful business is successful because it solves an established problem in the market. The chance of your product hitting it off in the market is amplified if it provides a needed solution to consumer needs while aligning with established market trends.
I spoke with Antonio De Shawn Spears, a product development consultant and CEO of City Global, a business concierge service. If your product meets these criteria, the next thing is to validate its viability. "A valid idea isn't yet feasible until you subject it to the market's realities. In my line of work, I've seen too many business owners attempt to go in blindly because they're infatuated by the potential of their ideas. The market is not sentimental," he says.
Amazon isn't the pioneer of the e-book market. But it found a way to simplify the process. To test your product, build a minimum viable product or a prototype, depending on your industry and business objectives, and make it available to the market. The data and feedback from this exercise will provide invaluable insight you can use to create more efficient iterations of your product. It can also help you narrow down your ideal customer segment, among other benefits.
Don't go it alone
Consider striking partnerships that are strategic in how they help you fulfill various aspects of your business operation and customer fulfillment. This is why businesses often outsource specific responsibilities instead of going the cost-intensive route of managing different departments in-house.
Ira Horowitz, the chairman of City Global, speaks about the benefits of outsourcing and business partnerships. "The outsourcing market is growing in leaps and bounds because businesses are realizing, beyond its financial incentives, how much it helps them focus on their core competencies."
City Global is a valid example of the power of strategic partnerships. The business concierge service, launched in 2009, helps its clients handle the entire product development and delivery cycle. Simply put, having the right partnerships can push a product further and, often, faster.
Read More: 6 Simple Growth Hacks for Startups
Keep it simple
If your business is already doing well, there can be a temptation to do more to have an edge over your competitors and seize the reins of your market. Keep the same energy from your ideation days; before updating your product or introducing a bunch of new features, be sure the market needs it.
I like to do the Facebook versus Craigslist comparison. When Zuckerberg launched Facebook, it was a very basic website with very few functions that afforded users a very short learning curve. The social media platform has come a long way since then, but it has taken the best part of two decades to iterate it to this point. The company introduced new features only when the need was already established. On the other hand, Craigslist has looked the same since the beginning and has maintained its relevance with the changing times. Why? Because there hasn't been a need to. Users love it the way it is because it's simple and easy to use.
The lesson here is not to focus on new features and differentiators. In product development and iteration, keep it as simple as possible and prioritize ease of use, as it is the best path to optimal user or consumer adoption. Introduce tweaks only when the market has already validated them so your product never ends up solving the wrong problem. Don't innovate yourself out of the market.
Entrepreneurship, like anything else, continues to evolve. Industries are innovating and recording dynamic shifts in what is now accepted practice. While the entrepreneur must stay with the times, it is crucial to stick to enduring business principles to help build a solid foundation that'll stand the test of time and business evolution.
Photo Credit: Getty Images.