Welcome back to our series on building a successful technology-based product. In our last instalment, we discussed the importance of knowing your subject and audience. Today, we’re taking the next crucial step: understanding why you should build your product in the first place. This article is all about engaging your target market, validating your ideas, and ensuring that what you’re planning to build is not only needed but also viable.
Before you dive into building your product, you need to have a clear understanding of your target market. This goes beyond just knowing who they are—you need to talk to them, engage with them, and truly understand their needs.
Start by reaching out to as many of your potential customers as you can! Tell them about the product you’re planning to build, but don’t stop there. Ask them what they really want. What are their biggest pain points? What would make their lives easier? Most importantly, how much would a product like yours save them in time or money? Would they buy it? And if so, how much would they be willing to pay for it?
These conversations are crucial because they provide direct feedback from the people who would actually use your product. It’s not enough to assume you know what they want—you need to hear it from them to ensure your product will meet real-world needs.
Is your baby ugly? It is imperative that you find out before you sink thousands of hours and dollars into a venture that may not survive because it didn’t have a market fit. Many budding entrepreneurs have fallen into the trap of building first, asking later; few survive this trap.
It’s one thing to know what your target market wants, but it’s equally important to understand who makes the buying decisions for products like yours. Know who your customer is.
Are you already speaking to those decision-makers? If not, it’s essential to identify who they are and start engaging with them as well. Validate what they would need to see from you to be convinced to buy your product. This could include product features, pricing models, proof of concept, or even testimonials from other satisfied users. The more you understand their decision-making process, the better you can tailor your product and pitch to meet their needs.
After gathering all this valuable information, it’s time to put it into a framework that will help you assess whether your product idea is worth pursuing. This is where the Lean Business Canvas comes in.
Start by defining the problems you’ve uncovered through your market research. What are the key issues your potential customers are facing? Next, outline your solution—how does your product address these problems in a unique and compelling way?
Then, articulate your Unique Value Proposition. What makes your product stand out from the alternatives? What’s the one thing that sets it apart in the market?
You’ll also need to consider the alternatives—what are your customers currently using to solve these problems? How does your product compare?
Finally, define your customer segmentation. Who are your early adopters? Which segments of your target market are most likely to embrace your product first? These are the people you give early access to your product so they can tell you the good, the bad, and the ugly!
With your Lean Business Canvas in hand, the next step is to work out an initial cost structure and potential revenue streams. This is where the rubber meets the road.
Based on your conversations with potential customers and decision-makers, create a simple cost model. How much will it cost to build and deliver your product? What will your pricing strategy be? And most importantly, can you make money from it?
Here’s where you need to be brutally honest with yourself. If the numbers don’t add up, even after tweaking them, it might be time to reconsider whether this product is worth pursuing. Be pessimistic in your assumptions—if you rely on lofty prices or unrealistic customer numbers, the only person you’ll be fooling is yourself.
Make sure your product can succeed even under the harshest of conditions. If it still makes sense financially, then you’re on the right track.
To recap: Before you start building, you need to engage deeply with your target market, validate your ideas, and ensure that your product is not only needed but also viable. By putting this information into a Lean Business Canvas and assessing the financial feasibility, you’ll have a solid foundation for moving forward.
In our next instalment, we’ll explore the practical steps and methodologies you’ll use to bring your product to life in “How Are You Building It.” This next step is critical to ensuring that your validated idea becomes a successful, tangible product. Stay tuned as we continue this journey together.
Remember, the key to success isn’t just in the idea—it’s in the validation and execution. Make sure you’ve done your homework before you start building. See you in the next installment!