If you're laying the groundwork for a startup, it's no surprise that the odds for success are often against you. A 2018 study by CB Insights unveiled a common culprit when it reported that 42 percent of the failed startups surveyed had cited “no market need” as the reason they closed shop.
You have to wonder how that could possibly happen. How do smart people get together to build a business and forget to make sure people will buy the product? That scenario reminds me of a classic symptom of entrepreneurial overconfidence: an elegant solution desperately in search of a problem.
Instead, to truly thrive, successful founders will keep their would-be customers' problems top of mind at every step and avoid falling in love with their own solution.
Startups that miss market expectations tend to source their ideas from the wrong places. After all, startups can’t generate problems to solve on their own; they must consider their prospective customers' wants and needs. That doesn’t mean asking those individuals about the solutions they envision, or soliciting the outside solutions which so often stifle innovation.
Instead, new and growing companies should ask their markets about their problems and then come up with new solutions based on their findings.
For example, Agentology, a lead response and follow-up platform for real estate agents, found that real estate agents are great at selling houses but less skilled at handling online leads. So, instead of asking agents how to solve that problem, Agentology built an entirely new technology platform as a solution.
This way, the company avoided fighting a crowded market for relevance; now, it owns a solution that connects buyers to agents in a way that’s easy for agents to manage...See Full Article