Do you have a business concept that you think will be AMAZING? Many people with new business ideas think their concept is the best, but they aren’t certain how to prove it to their investors. It’s necessary to show that proof in order to find the funding you need for your business, so here’s how to clearly show that your business concept can actually attract customers:
Build a Prototype
Create a website, cook the food, or start offering the service on a small scale. Offer it to a few customers, and see how popular the service/product is. Building a "minimal viable prototype" (MVP) is an important part of the start-up process, as it’s how you get the first clients, collect information, and find out just how potentially lucrative your startup can be.
Set a Trial Period
Determine that you will offer your product or service for a set number of days, weeks, or months. This will give you a specific timeframe to work with, keeping you focused on high performance during that time. You’ll be able to quantify the data more easily once you know exactly when your trial period starts and finishes.
Run With Customer Feedback
Once your MVP has been launched, monitor the feedback from your customers. Compile all of the comments, complaints, and advice your clients have given you, and use that feedback to improve the service or product. Fine-tune exactly what it is that you are offering your clients, until you find that sweet spot--your niche--where ONLY your product can meet a specific need.
When you are preparing your pitch for your investors, make sure that you have hard data on hand. Make sure to monitor your customers, site data, sales numbers, time expenditures, and all of the other important aspects of business success. Once your trial period is complete, take all of the numbers you have compiled and put it in one presentation to show to your investors. Those facts will be far more appealing to potential investors than all the speculation and enthusiasm in the world!
Determine the Correct Cost
In order for your concept to attract customers, it has to be priced reasonably. No one will pay $50,000 for a bucket of ice, and anyone finding a car priced at $1,000 is going to be very hesitant to buy it. Use your trial period to establish a price range for your product, and tweak the price according to customer feedback. If your customers are willing to pay more for the product or service, you can increase the price--yet also increase value at the same time. A clear idea of your product’s or service’s net earnings will help you attract investors.
The only way to find out how successful your concept can be is to launch it--even if just for a few weeks at a time. It will help you to discover exactly what the demand is, how large a market you can reach, who your competition is, and more. That will be the key to proving how attractive your product is to customers, which will make it possible for you to find investors!