Is your business really solving your customers problems?

How do I know my idea is good enough to start a business? Believe it or not the world’s biggest existing companies are constantly asking this question too. When we help clients strategize, the first basic business building block we start with is "The Problem".

In simple terms business is not about your product or service, it’s really about the customer's problem. If you think about it; the customer only pays you because the product or service helps them solve a problem that they have. Consider body lotion; the leading brands sell over $500 million a year and this is only one product in a massive multi-billion dollar industry. So why do they sell so much lotion? It’s because lotion solves a problem that so many people face on a regular basis; "dry skin".

I will also say this, once you identify the customer problem that you are solving you should print it or brand it somewhere within your company, office, etc. Keeping a clear focus on what problem you are solving will help you innovate as the problem evolves to improve and grow your business. Let’s go back to the lotion example: 

·       Problem 1 – dry skin- companies made lotion in bottles that customers can keep at home.

·       Problem 2 – dry skin happens when you’re away from home- companies made lotion bottles smaller that you can take with you on the go.

·       Problem 3 – dry skin while traveling but airports don’t allow containers over a certain size - companies came out with travel size lotions. 

In this very basic example you can see how keeping an eye on the problem helps you innovate and continue to serve your customers.

Whether you’re just starting your business or you’ve been in business for a while here are some questions you should consider. 

1)     What problem(s) do my products solve?

2)     How many people experience this problem?

3)     How often do people have this problem?

4)     How many people are willing to pay for a solution? (a critical mistake that some businesses make is assuming that everyone who has the problem is a likely customer)

Use these tips to help guide your through your business development process and look out for more free videos, blogs, tips and training from the TLTurner Group. If you have a topic of interest let us know.