When you start a company, you really are not aware of the forces that are contending with you.
I do not mean spiritual forces, that’s beyond my scope of advice; I mean the war to control the flow of money.
To start a business, you need to understand how to make money and how to connect making money with solving problems.
Money is the reward you get for solving a problem. This means that in any venture, you need to identify a problem and then find a solution to solving that problem in such a way that those who have that problem adopt your solution.
My phrase above may sound a bit confusing but let me break it down into sections and explain.
1. MONEY IS THE REWARD YOU GET FOR SOLVING A PROBLEM.
To make money, you have to solve a problem. To solve a problem, you need to identify the problem. There are problems all around us. Uber realized that getting a taxi in many cities is a big problem. They came up with a solution and as they say, the rest is history.
Any society that has a lot of problems, is a society where there’s huge opportunity to solve problems = being rewarded with money.
2. WHEN YOU IDENTIFY A PROBLEM, FIND A WORKABLE SOLUTION.
Finding a solution to a problem is not easy. It would require you to think out of the box or you can simply conduct research on other societies who have faced similar problems and the solutions they have adopted to solving those problems.
This option requires some adaptation and testing but this approach is a time saving one.
3. PROVIDE SOLUTIONS THAT ALLOW ADOPTION
When you develop a solution, this solution needs to be communicated in such a way that allows people adopt them easily. You may have the best solution in the world to a problem but if people do not understand your solution, it will remain dead on arrival.
It is at this point that many start-ups and entrepreneurs go astray. The sad thing with some problems is that people don’t even realize they have that problem!
If you are touting a shiny new solution to a problem, you will not get customers if people don’t even know they have that problem. Start-Ups, therefore, need to find ways of communicating the problem to potential customers and then telling them about the solution.
There is no silver bullet on how to do this but as an entrepreneur, you need to learn how customers want to receive your solution. Keep learning and adapting.
I had discussions recently with a start-up who offered discounts on cocktails in selected bars for a subscription. You can find 17Hi on the Apple Store.
For RMB99 (Approx $14) a month, subscribers can get a free cocktail every day for a month in hundreds of bars in a specific city. For the average person, these free drinks add up. If you were to go to a bar daily and order just one cocktail, you would end up spending over $200 in a month. 17Hi solves a problem by saving you up to $186 a month on your drinks. In addition, they also help you discover new bars and places to hang out.
For the bars, the value proposition is that 17Hi sends them new customers who would otherwise not have visited their bar.
I used the 17Hi example of how start-ups need to think using a collaborative approach. Your start-up is at war, are you charting the course for a win?
Have any thoughts on this article or want to share the things that have worked for you, shoot me an email firstname.lastname@example.org or leave your comments below.
Article from Omololu Consulting
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