Getting venture capital is not the point
“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”
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.