ASSESS THE MARKET

It’s also key to understand exactly who you’re selling to so that you can create the optimum strategy. 

Defining your target customer

Your idea needs to target a specific set of customers willing to pay for your product that either solves a real-world problem or has a certain value to them. 

What is the common trend amongst your customers? This can include anything from:

• age
• gender
• location
• habits
• educational background
• income status
• hobbies and interests.

You would have covered what problem your product is solving above. So combining that with a clear understanding of who your customers are is key.

Innovators typically create stories about their customers to help them visualise who they’re selling to. This is called a ‘customer persona’. 

Who are your competitors?

Make a list of all existing competitors, even if they are indirect. Having a better understanding of your competitors will allow you to know whether you are creating a space for a completely new service or whether you are providing a similar service but with better features. 

An example of a popular business development theory is known as Business Model Canvas. It’s a systematic approach to testing the validity of your idea and tracking the innovation process. Download the Business Model Canvas.