What to consider before starting a business – Inside The Studio
Written by: Pete Heslop
Inside The Studio is our behind the scenes series which lifts the lid on how we run our Digital Product Studio.
We’re giving away our tips, tricks and processes which help us grow year after year.
In this week’s video, we’re talking about what to consider before starting a new business. We often meet folk with new business ideas who want to start right away on their idea.
There’s much more to a business than an idea and a good product.
We break down three key considerations before jumping in.
Concreate the idea
You need to fully understand the idea you have. This sounds simple, but it’s key and often overlooked.
- Who’s the customer?
- Is that target audience willing to pay for this service/product?
- Do you have access to market to these customers?
- Do you have experience in this sector?
- Is there a product-market fit?
Once you have your idea solidified, you need to think about how you will compete against your competitors?
Are you cheaper, better or different? Perhaps you should pick a niche, aim at a single market or sector with intense focus.
Lastly, can you explain your idea in one-line and then One paragraph? Here’s our example.
Steadfast Collective is a digital product studio.
We craft digiyal experiences; incubating products and delivering high-calibre services for our partners.
Prove the idea
What is the minimum viable product for your idea?
How can you prove the market will take to your idea.
We use the example if you’re looking to build a mobile app which helps give you tips on how to fix your car, you could start with a weekly email of car tips and tricks or a cheap Squarespace website.
Build your audience
As soon as your set on your idea, you should start to build an audience.
It’s important that you have a fanbase of people who are invested in your startup story, excited for your product and willing to give you feedback along the way.
Laravel’s Taylor Otwell using the idea of a value bank. Your audience each have a value bank, which you should be depositing value into.
This could be content, help or a free level of your app. Only once you have built enough value into their value bank, should you try and make a withdrawal, which could be ‘Can you test my app?’, ‘Download my ebook’ or ‘Pre-order my book.