Posts Tagged ‘Women Entrepreneurs’

After asking for The Story to explain what the world looks like before the product / service exists and then what the world looks like after, Bizignite asks "What problem(s) does your idea solve?". It seems like a simple enough question, especially if a 30+ page narrative style business plan has been written, or the entrepreneur is looking for funding, but getting a clear concise response is rare. Usually we get a 10 minute explanation of the solution. Knowing what problem the idea solves is the nucleus of the startup business, if a problem isn't being solved there probably isn't a business.

This topic reminds me of the famous quote credited to Henry Ford "If I had asked my customers what they wanted they would have said a faster horse." Whether he said this or not, it gets to the heart of why it's so important to understand the customer's problem. In this case people wanted to get from A to B quicker, so Henry Ford, knowing this, came up with a solution to achieve this for as many people as possible.

By understanding the problem he knew what to build and how to sell it, i.e., communicate it in such a way that people recognized the problem and wanted to buy the solution. For example, "Our vehicles can get you from A to B 4 times faster than a horse." Now he didn’t say this, but you get the idea.

 

Truly understanding the problem your target customer has IS the key to open the door to a viable sustainable business.

 

Start your business right and create your one page business plan! And make it easy on yourself and your team with Bizignite.

I see it all over LinkedIn and a myriad of other web sites people looking for pre-seed, seed, angel, super angel, crowd sourcing and VC monies. But are they ready to receive it?

The point of investment money is to accelerate growth, which means they have to be ready to spend it "tomorrow" to start this growth. This is one of the mental check items an investor is looking for.

With this understanding, I ask again are they ready to receive money?
 
As you can imagine people always say to me "yes James, I'm so ready", but our experience is that they are not.

If you're looking for money, ask yourself if you're ready to receive it. The following checklist will help you answer this question:

  1. Can you complete a one page business hypothesis  in less than an hour? (validated by someone who knows about investing)
  2. Marketing plan
  3. Sales plan
  4. Budget – detailed enough to give a clear understanding where the investment money is going

If you approach an investor with these artifacts, she likes your idea and the chemistry is right, then you're a million miles closer to the money.