Have you rated Your Business Idea by Your Position on the Market Knowledge Scale. There is a big difference between business ideas deeply in touch with the market, and those that have occasional interaction with the market. By the market I mean the industry they are in, trends in that industry, customer demographics, customer habits, customer motivations, and competition.
When I meet with someone that wants to start or develop a business inevitably they have some business ideas, about what they want to do, or how they strongly feel that a certain business idea would takeoff, etc. Many of these clients are very excited about their idea, and they have a vision of seeing themselves with a successful business and all of the glamor that comes along with that. They know that if they just get a little funding, this business will take off and the right people will love their products or services.
Every client I work with will find themselves somewhere on what I call the Market Knowledge Scale. On one side of this scale, there is a weak knowledge of the market. On the other end of the scale there exists a strong knowledge of the market. There is of course a lot of room in between. Almost every client I have ever worked with believes their idea is different, they are unique from other ideas out there. Some clients (yes, more than one), believe their business is the next Microsoft, or the next Google. “If only people have exposure to my business idea (product or service), the money will come rolling in”, they say. “Sure, maybe my business is not for everyone, I recognize that. But, I am certain that there are a lot of people out there that will love my product (or service).”
Baloney! If you think you have a good business idea, have you tested it against the Market Knowledge Scale? (I wrote this post originally in early 2007, and it is just getting posted now… 
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1 response so far ↓
I agree. There are many “Business People” that don’t know their market. Yet these people spend exorbitant amounts of time, and sometimes capital, developing the service/product.
It is so important to clearly define your customer and then sit down and talk with them face to face. You would be surprised how much there is to learn about a product/service through a customer. Things you have never even thought of will surface. This is very valuable information.
Place your business idea on the scale. Find “Your Position on the Market Knowledge”. You will gain confidence in the ability of your business to succeed or be rethought.