Have you ever used Warby Parker? Don’t worry, I am not here selling glasses. In 2008, four friends(Blumenthal, Dave, Andrew & Jeffrey) studied at Wharton School. They noticed people struggled to afford prescription glasses, which often cost hundreds of dollars. The friends believed they could make better glasses for mass people at an affordable price. They also try some different concepts for customers. One of them was the “Home try-on” program. Customers can choose five frames from online and those frames are shipped for free at home. Then they can choose one of them. They worked very hard to solve customers’ pain points. They also try another concept called – “buy a pair, give a pair”. There they donate one pair of glasses to someone who needs it. Another company called Bombas also applied the same model. Here is three person team startup archetypes.
An entrepreneur must be aware of people’s problems. What are they suffering now? Can I solve that problem? If you study a lot of entrepreneurs’ talk you will find these 3 things they follow to build large businesses. They go to the absolute core.
1. What are you doing?
Almost everyone has an answer to this question in the beginning. First, you need to find your niche. If you see an opportunity in a field where you can contribute significantly, then that’s your journey. Some people mix a lot of things together and want to do too much. This can lead to absolute disaster over time. You need to manage your time and tasks effectively. So, first find a really good niche where you can make a meaningful contribution.
2. How is it different from the competition?
It’s really rare to start something that no one else is doing. Yes, some companies like Neuralink are exceptions. But to build companies like that, you need substantial funding. You need to study your competitors: how they operate, how they serve customers, and how they manage their supply chain. If you start a business in the same area, you must identify where your competitors are lacking. Ask yourself how you can improve and offer a better product at a better price. However, don’t engage in price wars because competitors with significant funding can easily reduce their prices to outcompete you. Instead, focus on building a really good product.
3. Why does it matter to your customer?
It’s crucial that your customer finds meaningful value in your product. Otherwise, why would they pay you? Your product must solve customers’ problems. For example, take Calendly. Initially, many people might think it’s just a calendar. But in reality, it solves a significant problem. Before Calendly, contacting a business through a website usually meant sending an email. Now, many agencies include Calendly on their websites, allowing clients to choose a meeting time and date. This makes life easier for agency owners and consultants. So, you need to find a business where your product truly matters to customers. Additionally, understand the financial capacity of your target market to afford your product.
When you have clear answers to all three of these questions, you can confidently start your entrepreneurial journey. Clarity about these aspects is essential. If you’re considering starting a business, make sure to figure these out first.
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