When the time comes to evaluate your business or product idea, with all the tools provided and research available, there is plenty infomation to make an assessment. Alternatively, it all comes to the bottom “3 questions”, according to Graig Stull et al, the authors of recently released product management masterpiece, TunedIn: Uncover the Extraordinary Opportunities That Lead to Business Breakthroughs.
1) Is the problem urgent?
Make sure your business addresses a real “burning”,hot need, which can be exemplified via incurring significant costs, losing value of time and money. The book talks about the ticket resale market, StubHub – where the urgency is very visible.
2) Is it pervasive in the market?
Size matters, especially when it comes to your potential market. If the problem you solve is common and can be found in a number of scenarios or buyer personas – go for it.
3) Are buyers willing to pay to have this problem solved?
This is the key: if your potential customers are not willing to part with their cash for your service, why bother? Check all alternatives that compete with your solution and test its “marketability”. The good news is: if the urgency relates to monetary costs, your chances of charging “what-market-can-bear” grow significantly.
Ask these top 3 questions, run this “pick-the-winner” acid test, when you think about your product!