We are starting a new series this month on Business Planning: Product and Market. Figuring out your product or service offering is obviously at the very heart of any new business. However, it is at this crucial, early stage that many would-be BAMers go wrong by failing to properly consider whether there is a real market need – and therefore customers – for the product or service they want to sell. There is no business without a customer.
A recent blog for The Institute for Faith Work and Economics on starting a social business puts it this way: [It] is imperative to have the customer in front of your mind when starting a social business… To start a social business, you have to know what will be marketable to your target customers.
The first thing you have to do is figure out what sells – don’t start with the cause. The cause is what moves us… but, you can’t start a business around a cause. – Jimmy Quach, via TIFWE
Many BAMers get the ‘cart before the horse’ – they start with a cause, or they start with the potential employees they are hoping to empower, or they think of a ‘great’ idea for a product or service that feels doable to them. However, if that idea doesn’t have a market – if there are no customers – then there will be no sales, no cash, no empowered employees, no credible business and the cause will be lost. You need both the ‘cart’ and the ‘horse’ to move forward. There is nothing wrong with having a cause, or trying to empower a certain group of employees or pursue a particular product; however you better make sure that there are customers and sales to drive that business forward towards making the impact you hope to make. Read more