A “Need” is something you can’t live without. Obvious examples of needs include; air, food, water, clothing, shelter, sleep for individuals and consumers. However, a need is a little different for an organization, and falls into one of two categories: The Need to Save Money, or The Need to Make Money. The need to make money can also be broken down further into the following categories: to gain a competitive advantage (Increase Revenues), or to catch up to a competitor (Increase Revenues).
A “Want” is best described as something you would like to have, such as a TV or vacation. It is not absolutely necessary, but you have an overwhelming desire to obtain it. This definition is the same for both individuals (consumers) and organizations.
“ Wants” always compete with other “Wants” . “Needs” list is shorter and always trump “Wants”
Buying Stakeholders User Buyer Influence – Person(s) to represent the interests of the user community. End user Technical Buyer Influence – Person(s) who are focused on making your solution work within their environment Economic Buyer Influence – Person(s) who own the budget and sign off on purchase
“ More Startups fail from a lack of customers than from a failure of Product Development” – Steve Blanks (UC Berkley)
Product Development Alpha/Beta Test Launch / 1 st Ship Concept/ Bus. Plan Customer Discovery Customer Validation Customer Creation Company Building Product Development Customer Development
Step 1 – Get Clear Who is your Target Market? What is the flow of money? Who are the buying influences? Value of your solution?
Step 2 - Sponsors Product Development Alpha/Beta Test Launch / 1 st Ship Concept/ Bus. Plan CVS DVS SVS Concept Validation Sponsor – Help you to validate your concept or idea before investing precious time and money into developing something that people do not need or will not pay for. Development Validation Sponsor – Transition from CVS. Validation resource during your development. Solution Validation Sponsor – Transition from DVS. Alpha / Beta tester for your solution. Industry Validation Sponsor – Industry expert or thought leader.
Take 5 Minutes to identify 5 potential sponsors that you may know today…
Step 2 – Why would they want to help? Recognition People who are motivated by "Recognition" are interested in respect, admiration, notoriety and celebrity. They want to be recognized by people around them as someone important, credible, and someone to be associated with. Influence People whose primary motivator is "Influence" find power, control, competition, independence, and order to be most important. These people are similar to recognition seekers in many ways; however it is more about what they feel the recognition will give them. They may view this power, or influence, as something they need to accomplish their goals. Internal Some people are motivated by "Internal" factors like morals, duty, intellect, creativity, philanthropy, and honor. These people are less affected by what others say than they are about what they say about themselves. This inner voice is what will make them take action, if they believe in the cause. Profit "Profit" motivated people strive for success with money, possessions, acquisitions, wealth, income and growth. Most often people who are in this category will be very upfront and direct about it, which makes it easier to understand and work with them.
Set expectations as to what you would like them to test and measure. Use measure data from interviews.
Confirm expectations as to who will need to be involved on their end.
Set start date, timelines, success criteria, end date .
Prepare your proposal.
Step 7 - Proposal Pricing – A fair exchange of money for value ROI – Based upon the information gathered during Interviews and testing. Ideally, show how it makes the customer MAKE money…not just save it! Implementation Plan – Services required, responsibilities, timelines, success criteria. Challenge Moving Forward: Find a way to lower your barrier to entry. Subscription Models, Assessments, Consulting, Success Based, etc. Use the opportunity with the Sponsors to identify ways to get it in the door!