We agree with Peter Cohan, author of the Inc. article “4 Ways to Know You're Selling to the Right Market”, on his thoughts on the importance of selling to the right market and solving the right customer problems. As entrepreneurs begin the process of scaling their business it’s not good enough to just find a customer problem to solve, the key is to find a big problem to solve.
It all starts with the customer.
So often we see entrepreneurs that go to market with a solution in search of a problem. Success dictates that this go to market strategy be inverted. The entrepreneur first must intimately understand the customer and the business problem that handicaps that customer. They now proceed with providing an efficient and cost effective solution to that problem.
Business success today is not just about being innovative, what really counts is to be needed. Part one of the market model is to understand thy customer. Part two is to be comfortable that the initial market you serve is large and that you can easily identify adjacent markets that look just like the initial market you have targeted.
Accuracy in understanding these two questions coupled with great execution almost always lead a company to becoming investment grade and highly successful.
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