There are millions of ideas out there, but how are you going to find out which one will break through the clutter. When starting up a business it is very important to set up your product for success, even before creating it. In order to do this you must use The Solution Interview process.
What you need to learn
- Customer risk: who has the pain?
- Product risk: how will you solve the pain?
- Market risk: what is the pricing model?
Test the solution with a “demo” before building the actual product. A demo will help customers visualize your solution. In order for a demo to be effective, keep the following in mind:
- The demo needs to be realizable – simple, clean but effective
- The demo needs to look real – the more real the more accurate
- The demo needs to be quick to iterate - have the ability to incorporate customer feedback
- The demo needs to minimize waste – create it according to the final technology to be used
- The demo needs to use real-looking data – actual content that supports your solution
Testing your pricing:
When testing pricing, don’t ask customers what they will pay, tell them – it will allow you to measure customer’s reaction.
You cannot convince a customer that he/she has a “must-have problem” but you should convince a customer to pay a “fair” price for your product which is usually higher than the customer thinks it is.
Your job is to find early adopters who are at least as passionate about the problem’s you are addressing as you are who are willing to pay you that fair price.
Remember, your pricing is not only a part of your product; it defines the customer segment you attract.
One of the core values we have as a company is to inspire and empower people in all aspects of their lives. Additionally, if you want to read about our Custom Software Solutions and Consulting Services, please visit www.isucorp.ca