Mindset Shift

Started with 7th Cohort of @NasscomSME mentor sessions and one of the most frequently asked questions by #MSMEs is about the Evolution from a services company to a product company.

The Mindset Shift Every Entrepreneur Must Make

Promoters take on the risk of setting up a business, often operating in a bootstrapped manner while constantly sensing customer needs to drive innovation.

Entrepreneurs who embark on this transition quickly realize that the most critical change required is a shift in mindset. They must reinvent themselves, leveraging their past experience while adopting a new perspective to achieve their product vision.

Key Mindset Shifts:

Eagle-Eye Focus on a Single Product:

Product mindset requires focusing on a single, scalable solution addressing a pressing challenge for a specific community.

Market Specialization & Expansion:

Rather than catering to a broad range of clients, product companies identify a well-defined market segment, gain dominance, and then expand strategically.

Long-Term Investment Mentality:

Unlike services, where revenue generation is often immediate, product businesses require patience, Invest in the right direction, and build a strong sales function early on.

Overcoming Fear of External Investment:

Many founders hesitate to take on external investors, fearing loss of control. Scaling a product company often requires strategic funding, and the right investor can accelerate growth while complementing the promoter’s vision.

Constantly Tracking Competition:

Unlike service-based businesses that thrive on relationships and customization, product companies must keep a close watch on competitors, ensuring their offering remains differentiated and ahead of market trends.

It’s about building a new way of thinking. Those who embrace this shift with clarity, focus, and perseverance are the ones who successfully navigate the transformation.