Here’s the one question I can guarantee you’ll be asked when you speak to potential investors, funders, or partners:
When you talk to potential customers, how much money do they say they would pay?
This is a loaded questions, so let’s deconstruct it:
When you talked to
We call this “getting out of the building”. You need to get out of the building and talk to people, ideally asking them open ended questions. This isnot selling, this is talking and listening. Talk to peers, competitors, industry experts, analysts, etc. The great companies do this religiously.
And when you do talk to people, make sure you’re not selling or pitching. You’re talking to get them talking, so that you can listen to their needs so you can create the ideal solution.
to potential customers
Many times someone will come up with – and often pursue – a new business idea without ever speaking with the potential customer. If you don’t talk to a potential customer, how do you know you’re creating a product or service that solves a problem that they are willing to pay you for?
how much money do they say they would pay?
It’s easy for people to say they like an idea. It’s also easy for you to tell them a price and ask if they’d pay that. What you want to do is ask an open-ended question. By asking people what they would pay for something, it will help you better understand the value to them, and the severity of the problem you are trying to solve.
Written by: Brad Treat, Entrepreneur-in-Residence