My very first online business was selling cutlery. Yes, knives and stuff. I was excited because the markups on cutlery were double or triple my costs. Although I was eager and energetic, I failed to understand a few key business concepts.
I’ve since developed a checklist I use before breaking-ground on a new idea, or consulting clients. If answers aren’t apparent, we work to find them.
Why did you start this business, what’s the story
Hopefully, the answer isn’t “to make money”
Who does it help
Identify your customer group(s)
What is their fundamental problem
Explain the issue(s) the customer faces
How does your app/idea help them
Explain how your app/idea addresses these issues
Why will they want it
How will they feel after they buy, what’s the end result
Is it worth paying for
Is the end result worth the cost
What’s your core vision
Beyond the product, what impact will you make
What’s the value ladder
What other products can be sold to the same customer
Eight questions you should be able to answer without thinking. If you can’t, please get to work before you invest money.
Because, like a blueprint, these answers should guide everything you do.