So you want to start your own software company?
Being the founder of a software company is exciting. It's also really, really hard.
Many people have a desire to start something. They see many companies getting launched, raising money, and getting traction. It seems easy enough. Some companies even have really bad ideas but they look like they're doing well.
A big motivating factor is that with your own software company you can run the show and make a lot of money when you sell it.
There are many reasons why the idea of starting a small business is attractive to people. Here are some of the top ones reported by entrepreneurs across the nation.
Top Reasons to Start a Business
1. Entrepreneurs can work for themselves. In a worldwide survey, it was discovered that the biggest motivator for Americans to become entrepreneurs is the fact that they can be their own boss. According to CBS News’ Mark Hendricks, this is because the United States is a place where “individual freedom is highly prized.” Thus, people would rather be independent workers, looking after themselves, instead of being observed by higher-ups.
2. Entrepreneurs want to be more hands-on. According to a survey from Cox Business, a reason why employees decide that starting a small business is right for them is the fact that they can build something from scratch. When you’re on your own, you feel a sense of satisfaction when you accomplish something. If you don’t meet your quarterly earnings goal at your small business, it falls on you. However, if you figure out how you can save money every month on your important expenses, you’ll feel like a million dollars. Working at a company, on the other hand, is a group effort, and you may feel like just another cog in the machine.
3. Entrepreneurs want more money. Money is another factor in employees’ decisions to take on a new career as an entrepreneur. Perhaps a person’s current job doesn’t pay enough, or he or she started a side business that suddenly became lucrative and required more time than he or she thought it would. The job that seems like it will pay a better salary almost always wins out over the lower-paying one.
So why not give it a try? You ask yourself, "What do I have to lose?"
All you need is an idea, right?
Well, the best companies start with a problem, not an idea.
Start with a Problem
Frequently, companies will find an underserved market and decide there is money to be made. But, just because there is an underserved market doesn't mean someone will actually pay money for a solution.
You need to hone in on one particular problem. Then, you need to ask yourself why this market is underserved.
Maybe it's because there is a problem that hasn't been solved and there really is an opportunity there, or maybe it's because this target market doesn't have the money or the interest in paying for a solution.
You need to know why they would buy a solution of any kind, yours, or anyone else's. You need to know what their emotional pains are and what emotional gains they're looking for.
You need to start with the what and the why. What problem does your solution solve? Why do people need what you provide?
Understanding your customers' pain
The key to discovering, understanding, and satisfying your customer begins with asking the right questions.
You should have clear answers to questions like
Who is your buyer?
Why would they buy a solution of any kind?
Why would they buy from you?
What is the solution to their problem that you specifically are providing?
You must know your customer. You must find a way to understand them.
Who is your target customer?
What is their targeted need?
Does what you're providing meet their specific need?
We've talked a lot about the importance of understanding the pain points. So let's now talk about how you go about addressing these needs. Customer pains require pain relievers.
How do you intend to eliminate or reduce some of the annoyances that are causing the pains your customers are experiencing? Pain relievers remediate the pain that your customer is experiencing.
Customer pains, once they're relieved, must be followed up with customer gains. Articulating the gains a customer will experience is key in addressing the two big questions of the what and the why. What problem does your solution solve, and why do people need what you provide?
Customer gains describe the outcomes and benefits provided by your product for your customer. Your customers often will have some gains that they're requiring, expecting, or simply desiring. These may be non-negotiable expectations. They're counting on these solutions to solve their problems and produce positive results. Your customer may even be surprised by a gain your solution provides. These gains often include functional utility, social gains, positive emotions, and cost savings.
Now that you have identified the expectations of gains for your customers, you must shift your focus to gain creators. What are gain creators? Gain creators describe how your products and services create the gain your customer is expecting. This is how your product can answer the what and the why questions.
Remember no one buys a product, they buy a problem solved or a result achieved.
If you fail to communicate what problem you solve or the result you enable, what you build may be a moot point.
If you're looking for business help and are interested in accelerating your success and growing your own business, contact me at firstname.lastname@example.org.
Feel free to also visit our website to learn more about the services we offer to help you Position Your Potential: https://www.therevenuegroup.net/.
I also invite you to download the white paper and learn the 5 step process on How to Quickly Increase Your Valuation: a Proven 5 Step Process.