Page 122 - 6 Secrets to Startup Success

The Pull of the Market 101

obvious point that the brilliance of a product’s design doesn’t
always translate into customers, he contends that the basic
market challenge for the Segway is that, although it is poten-
tially handy for a range of potential users (commuters, secu-
rity guards, golfers, etc.) it’s not the best solution for any of
them. In other words, each type of potential user has a more
favorable alternative, one that out-competes the Segway as a
solution. Golfers have golf carts. Commuters have bikes. And
for many, good old-fashioned walking is preferred.14

In order to build a loyal customer base for your startup,
you must provide something uniquely and consistently valu-
able to them. Honestly assess how your offering is com-
pelling or advantageous in the customer’s eyes, whether
through pilot projects, customer feedback, or, at a minimum,
a thorough discussion and analysis of how your envisioned
product will differentiate itself as experienced by the buying
public.
All of these questions are intended to give you a taste of what it
means to go beyond untested confidence in your idea and develop a
more coherent understanding of market forces and opportunities re-
lated to your startup idea. For a more thorough set of questions, see
the Market Readiness section of Appendix A. For all of these market
questions, be sure to distinguish which of your answers are based on
hopes or assumptions, versus verifiable facts, and find ways to test
those.

American Management Association • www.amanet.org