Very few products or services break open new markets for previously unrecognized needs. Yet, many startup business plans claim they are in unplowed fields – virtually without competitors. Of course, it’s almost never true.
If a potential market has critical needs, problems that are worth solving, there are solutions. They may be less than optimal, but they exist. More than that, to sell a solution, the potential market has to recognize their existing solution as problematic. The value proposition for the offering needs to be very clear and speak directly to the core problem as well as the issues with common workarounds.
I came across an interesting case study of a company breaking into soft drinks. Carbonated soft drinks are a very mature category. The existing players are all very large, have huge advantages and efficiencies. But, a start-up is carving out a very real segment of the market by learning from customers and applying that experience to improving their business model and marketing. It is a good example of the Lean Startup validated learning loop.
The Lean Startup Business Model Canvas is a tool that can be used repeatedly as new concepts are considered, tested and validated. You don’t have to use the online version, but it is a good place to start. The point is to use it to list your assumptions, identify the ones that have the highest risk to success and validate them. And don’t let he name fool you, it is just as useful for existing companies launching new lines or reassessing old ones.
Ignore your urge to define your market as new and test to see what people are currently doing and how satisfied they are with their existing solution. You might be surprised….
