How to Build Successful Business Products
- Understand just what one person/business needs and will buy now.
- Get the customer to sign a contract.
- Start building it.
Why Market Research Sucks
The problem with doing market research? It goes a little something like this:- You: "Have you ever wanted [yadda, yadda, yadda]?"
- Bob: "Yes, I'll want something like that."
- You take nine months to build it.
- Bob: "Oh, I won't buy it, though."
The "Do-You-Want-To-Buy-This-Sucka-Now?!" Approach
(Or for short: DYWTBTSN.) People could be the most successful, the wealthiest, the most athletic, the gosh-dang sexiest; yet, they'll still want/need something to make their lives that much better. That could be a:- Computer designed specifically for Bakery CEOs
- Inspirational posters for hospitals
- Calorie Tracker for football players
- Philly Cheese Steak melted with pizza toppings
- etc., etc., etc.
- Jimmy, what do you need?
- Susie, what does your business need?
- Hendy, how can we help your team?
- what they want
- what they'll buy now
Why DYWTBTSN Rocks
Think of your most "unique" habit. Now, if you haven't talked with people about your "unique" habit, you'd figure: "I'm the only badass who has this habit." Yet, when you announce that "unique" habit to the world, you'll notice several others have the same, exact, "unique" habit. (Don't believe us? Go to some crowded message board like YouTube or Craigslist, and ask around. We'll give you money if we're wrong.) Or, try this:List your interests.
Based on that, do you think at least 10,000 people share each interest? Likely. Probably, even a million. Or, ten million.The Point
In a world filled with 6,000,000,000 people, we share similar mindsets to several (several) others. So if you're selling something to somebody, you know that a bunch more people want that same thing."Yo! Show me an example of the whole process!"
Consider Farm Dude Billy Bob Bobby. The scenario:- You: "Yo Billy! What does your farm need?"
- Billy: "I need a software that keeps track of my farm's cows. Fo shizzle!"
- You: "I can build it! Let's sign a contract, Billy Boy."
- Billy: "Done!"
- You and your amazingly awesome team build the product that helps Bobby track his cows.
- When you're done, you hand it over to Bobby; and, Bobby makes good on the contract by sending you the cash.
- You call other farm owners to pitch your product. 3214729815721508219 reside in rural America; some of them are bound to need the same product. You know they're out there; you just need to find them.
- What happens next? Ring! Ring! Ring! (Yes, that's the cash register ringing for your badass.)
"Billy Bob Bobby, what can I build for your badass?"
Read More Business Tips From Trizle »
8 Comments
on How to Build Successful Business Products
Stephanie
2006-12-11 15:10:59 UTC
First!
Billy Bob
2006-12-11 15:27:08 UTC
Second! Thanks for adding comments. I always thought your journal could use them. Keep kicking ass.
Hates_
2006-12-12 09:00:45 UTC
How much harder is it though to make someone commit to paying for something that doesn't exist, then something that you've already and can demonstrate.
Nik
2006-12-12 09:49:44 UTC
Yeh! Comments! Great work! :)
Andrew
2006-12-12 14:43:40 UTC
Hi Steph, Billy, Hates, and Nik! Thanks for your amazingly awesome comments.
Hates, great question. Yeah, an initial demo of your product wouldn't hurt -- but you definitely won't need it when you're approaching customers.
Why? Potential customers want just one thing: fulfilling a need. They want you to be the solution-provider.
Yeah, you could spend time building a product as a demo; but the problem with that:
*you don't know if that's what they really want
*you waste a chunk of time, money, and resources
*they probably want a more customized solution anyway
Customers are all about "Me." You could build the next revolutionary product with all the perks, but they'd still be happier with a more customized solution that benefits "Me."
If you can fulfill that need, they're more than willing to sign that contract.
Of course, there's that big risk involved for the customer:
"How can I be sure you'll provide me that solution?"
Tips:
*have a money-back guarantee
*have a minimal/no down-payment policy
*demonstrate your credibility from your portfolio
*provide them juicy value: tips, advice, suggestions to make their lives/businesses better
The more you can eliminate perceived risks, the likelier you'll get that contract.
Hope that answers your question. Please let me know if it doesn't, and I'll try to explain it a different way :)
julie
2006-12-16 19:30:13 UTC
I love this article and I found it just by chance. Keep up the good work.
I have spent most of my adult life coming up with great ideas for businesses and I am tired of seeing these ideas big and small parading in front of me on magazines and TV because somebody else took them to the marketplace first. I have decided to approach businesses and tell them about my ideas I have for them to do the work and take them to the marketplace themselves. They'll pay me a certain amount of money then the idea is completely theirs, no strings attached, no royalties, no nada. HOw does this sound to you, any advice?
Andrew
2006-12-17 05:29:07 UTC
Hi Julie!
I think it all comes down to how you negotiate your deal.
I believe for most businesses you deal with, they should offer something similar to the following:
1. big one-time fee / no royalties
2. small one-time fee / royalties agreement
If they don't offer the latter -- or if they do, but the one-time fee's too small, you can always (always!) negotiate the agreement.
Rule of thumb: anything and everything can be negotiated. You're dealing with humans after all, and you can get them to comply with your requests (royalties, etc.) more than you might think.
The hard/easy part then: Just ask :)
Of course, that's easier said than done. We wrote a primer on negotiation here: http://www.trizle.com/how-to-make-easy-money/
Hope that helps you, Julie! (Let me know if it doesn't!)
Power of three: Goal-setting: Business (3 of 3) : All Things Bright by Kathleen Bright
2006-12-17 17:18:01 UTC
[...] Accepting and embracing failure is a brilliant idea because if you don’t fear failure you’re getting out of your way. The first step to creating a brilliant product is creating a product. So, Kathleen, stop procrastinating! [...]
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