“The goal isn’t to get money from a VC, just as the goal isn’t to get into Harvard. Those are stepping stones, filters that some successful people have made their way through.” Seth Godin
The goal as they say in business is to find clients that you can satisfy, and satisfy in a way that results in profit. In relation to this, the most important problem to solve is the one that someone cares about. In finding a niche to successfully pursue in business, a customer focused one is always key.
Your consumer/client/customer would like to make a decision that makes them look intelligent and sophisticated. They would like to justify their decision in the following terms:
- It saves me time
- It saves me money
- Its easy to use
- I get it all here
- The service is great
However, an intimate, detailed knowledge of your customer, their habits, likes, dislikes, aspirations and desires is required. Most people do not base their consumer decisions on logic. The ‘why’ in what people do is usually answered by emotive expressions.
“I love their packaging”
“My mother has always used this”
“Android religion”
“Twam”
The ‘why’ is also triggered by the ‘rational logic’ of the mob. If everyone I consider worthwhile is doing it, speaking well of it, chances are I will want to use it.
Sometimes the problem with a product is not that it does not have funding, the problem is that it does not satisfy the psychological desires of those it wants to sell to.
You have a good point there. Your business is the customer, not a VC, getting funding is a beginning.
Or an end… If you have the clients, how many would refuse you funding?
i wouldn’t agree more! short, clear and concise
Thank you!
Nobody in their right might can refuse funding!! But it should go towards “Development expenditure” not recurrent.
Fund the expansion of your capacity to do what you do.
Most of the companies which we popularly refers to as Startups in Kenya are very small or in their very early stages of development. Actually in the idea stage of when looked at in comparison to Silicon Valley. When people talk about VCs and Investors in Kenya, the reference is always to Silicon Valley.
During one of the panel discussion Richard Bell said that we are focusing too much on Silicon Valley which is not helpful. “Who cares about Silicon Valley!” Was his exact word at one point. And agree with him. The best time would be when the locals investors will be able to put in the money to these companies however small it might be. At the end they understand the local dynamics.
That aside, before people look for funding they should try to get something to sell.