Every Company Needs a Good Map

Everyone wants to create the next great thing. Most people feel like they have at least one idea that would make millions if they could just get everyone to listen to them. It has been said that 82% of Americans feel they have a book to write, but not the time or talent to do so. The United States has a creative culture that often looks for ways to make money. Yet, it seems like every day we hear about someone who already has money making more. Rarely do we hear about some accidental millionaire. Accidental millionaires do happen; we just think they happen overnight.

How do you find the next great thing? Better yet; how do you make the thing you have the next great thing?

The first step, after the invention has been made or designed, is finding the right target market. If you build your product in response to a need the target market may be very obvious, but not always. Often, an expression of need does not result in an outlay of cash for the product. Overcoming inertia or "current state is good enough" feelings can be difficult. This often happens when the expression of need is not felt by the controller of the cash.

One of the biggest mistakes a company can make is to not do enough market research. Asking if something is wanted is not enough. The research must include the price point of acceptance, the ability to make the purchase decision, and the actual willingness to change.

A second mistake companies make when introducing a new product is to make it too difficult to change. If the new product is so radically different from the existing way of doing things, then it will cause more pain to make the change. It may be that after everything has settled down that things are better but many people will resist getting to that point.

Not to get very political but consider the war in Iraq. To take a country and people that are accustomed to heavy-handed government direction and put them in charge of themselves is a lot to ask. The transition to this new way of life is difficult because it is so different. Not only are the people required to participate in the decision-making, but they are now more responsible for themselves. This is a lot to ask people. Just today a report from congress says the US will have difficulty switching to digital television - imagine trying to switch to a new form of government!
Currently 20 million Americans (out of 300 million) would lose access to television if they do not buy a set top converter ($50 - $100). So congress has set aside  $1.5 billion dollars to fix this dire need. If it will take$1.5 billion just to make sure that everyone can see the latest news on the idiots of society, imagine what it will take to get people to see your new product.

Finding the right market means finding a group that will not only wants your product, but they must also want to buy your and tell others about it. That is the challenge. Often there is no easy solution. This is why investors like to see sales not just sales projections. Sales often mean that you have found a willing market.