The question was, what is the most important question that an entrepreneur must ask to ensure new product success in the market. Even after thinking for a while when I could not come up with a convincing answer, I promised the young lady that I would jog my memory, go through my numerous product launch failures and a few successes & get back with an answer.
The answer was a deeper understanding of a common fact that every one of us know, yet, very few of us appreciate as the starting principle behind any new product success.
The trick is not even the question that I am sure everyone thinks they know the answer for, the real question is "Where did the answer come from?"
The question is an oft repeated line in entrepreneurial circle -- Which problem does your product solve & what value a target customer willing to pay for solution of that problem.
Doesn't every entrepreneur seem to know the answer to this question-- why would anyone start an enterprise otherwise -- yet 90% of the ventures fail miserably.
What makes the difference between 90% that failed and 10% that succeeded?
My answer to that young student?
The difference is in the source of that answer.
To me, a go-no-go decision of a product venture lies in a simple question, does your product solve a real problem & can you provide a solution at a price that is more economical than the competition.
Now the million dollar question is - Who did you ask that question in the first place?
Go and ask real prospects, at least 4-5 of them, if the proposed product solves their real problem(s) and if they are willing to pay a price that sounds interesting. An affirmative answer is the first and only recipe of new product success.
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Subodh Vinchurkar is founder of ADPS Consulting and can be reached at subodhv AT adpsconsulting dot com
Subodh Vinchurkar is founder of ADPS Consulting and can be reached at subodhv AT adpsconsulting dot com
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