Alright, let's talk about investing in a new venture.
Before you put all your eggs in one basket, it's important to do your due diligence and ask yourself a few questions.
Here are four key things you should consider before taking the plunge:
1) Have you talked to enough potential customers?
It's crucial to understand the problems and needs of your target audience. There is no way to learn about this without talking to them.
Moreso, we aim to have 100 to 120 conversations.
Yes, we know. It's controversial.
However, 4 out of 7 projects we help are able to sign detailed LOIs and contracts after 3 months, including a binding payment clause in it.
Don't skimp on this step - it's the foundation of a successful business.
2) Do you know what you need to develop?
🔹What is it exactly that your customers want and not your product team?
🔹How does the product deliver value to your customers?
🔹Have people signed any LOIs or contracts on the delivery of this specific feature/benefits list?
Make sure you know exactly what will be in the first version of your product to deliver on your promise to customers.
3) Do you have a system to test your assumptions?
You're going to make a lot of assumptions about your business.
Test them early and be radically candour to yourself and the results.
A process will help you to generate enough data and structure your decision-making.
4. Are you willing to be patient?
Building a successful business takes time, patience, and persistence.
🔹Make small bets (don't invest a huge sum immediately).
🔹Don't panic after a few failed experiments.
🔹Trust the process, keep iterating and be truthful to results.
So, before you invest in a new venture, take a step back and ask yourself these four questions.
It could save you a lot of time, money, and headaches in the long run.
Don't create unicorns,
Let's breed blue whales.