All too often, entrepreneurs forget that the best reason for starting a business is to solve a real-world problem. The most successful businesses have a clearly defined purpose and fill a need by providing a vital service to their customers. Through their business, they eliminate a pain point and/or make life easier and more enjoyable in a specific way. Some might take an existing concept and improve upon it, making a product more effective, efficient or appealing. Others might assist customers in creating something new their lives, or seeing the world through a fresh perspective.
When a start-up cannot effectively provide one or more of these benefits to consumers, investors are far less likely to want to bring their resources to the project. And without crucial funding, it is impossible to create a healthy business development pipeline or gain traction in your industry.
The most successful companies are the ones that have a genuine insight into current consumer needs; they then craft a business plan that will solve the problem. Starting a business without this foundational insight and "hoping" that consumers will retro-fit the idea into their lives is a high-risk way to start a business; more often than not, it fails.
New products or services must be easy to integrate and add value by helping to solve a problem. In a sense, successful entrepreneurship requires "one plus one to equal 3 or more." The addition of a new business into the lives of consumers should be greater than the sum of its parts.
Above all else, the entrepreneur should continually ask themselves: am I solving a problem?
As business developers at New Road Media, we thrive on helping start-ups to grow and develop. We can assist you with creating partnerships, gaining ad sponsorships, raising capital and making sure your business is on a solid foundation. If you think we might be a fit, contact us for a consultation.