The blueprint of your business success or failure can be found in the answer to this question:
What problem does my business solve for the customer?
The mistake that many entrepreneurs make is that they become blinded by their passion. Many people have been led to believe that it is a good thing to be passionate, but customers won’t pay you money to be good at something – they pay you to do something for them.
A successful business is not about scratching your itch, but scratching a customer’s itch.
Just because you like baking cakes does not mean there is a need for another patisserie.
Be honest with yourself when evaluating business opportunities. Be ruthless in your assessment of the demand for your product. Are there sufficient customers who will pay money for you to solve a specific problem or address a specific need?
You don’t have to spend big to determine the scope for your idea. But you do have to step outside the emotion. Be rational; think through your venture before you start. Ask some potential customers. Understand the need that you aim to address.
It helps if you can passionate about meeting that need, but just because you are passionate about something does not mean there is a need in the market.
Next week we will look at the second principle.