Every action we take is a form of investment with an expected return. Out of all the investments ... [+]
Business success or failure is the sum of small wins and losses that result from our ability to act. Every action we take is a form of investment with an expected return. The more knowledge and experience we gain, the more likely we’ll make decisions with a higher probability of success.
Only action can equip us with the tools we need to increase the wins and minimize the losses. Out of all the investments that aspiring entrepreneurs can make, talking to potential customers, building a community and seeking the support of mentors will most certainly lead to wins sooner or later.
1. Talking To Future Buyers
Entrepreneurs don’t own products, their customers do. Without customers, there’s no product and a product without customers is not a business. Therefore, the ultimate guide of a startup and an entrepreneur should be the customer.
Based on experience, I found that most entrepreneurs delay interacting with the customer for as long as possible, usually, until the product is released. The benefits of talking to future customers as soon as possible include finding ideas worth pursuing, identifying market gaps, defining product features, pre-selling an idea, testing a product, building a network, and more.
In other words, one of the simplest ways to minimize risk in a startup is by involving those who will use and pay for its product. If you’re hesitant to invest resources in product development, your future customers will tell you if you should make that decision or focus on a different opportunity, perhaps a bigger one with a bigger problem and an urgent need. Consider future customers your mentors, investors and board members.
2. Building A Group Of Fans
Future customers are certainly one key group of fans, however, this group shouldn’t be limited to customers. It can include future investors, partners, mentors, influencers, thought leaders, and potential acquirers. Here are three ways to gather your tribe:
- Write value-adding content about your startup space.
- If you’re not a fan of writing, you can invite experts to answer burning questions. You don’t necessarily need a podcast. You can publish the answers in the form of a guide.
- Create in-person and online events and invite your key stakeholders to discuss a topic of interest and network.
At the end of the day, those initiatives are one form of marketing that will help you build organic reach for your personal brand and startup. Even if you don’t move forward with your idea, chances are, you’ll find new opportunities thanks to those interactions.
3. Seeking Mentorship
Posting questions in online communities does not count as mentorship. For mentorship to work, it’s important for the mentor to know you, your goals and background. Providing general recommendations without learning your strength, weaknesses and resources significantly diminishes the power of mentors’ advice even if they have all the experience you need to overcome your challenges.
Besides joining incubators and accelerators, the fastest way for finding the right mentors is by directly reaching out to them. Just like connecting with investors, potential customers and co-founders, start by building and nurturing a relationship before asking for their involvement. Even if the new contact does not turn into a mentor/mentee relationship, they can connect you with other mentors.
Research shows that mentors make a tangible difference in entrepreneurs’ ability to execute and boost revenue. As such, in addition to finding experts who would be willing to mentor you pro bono, compensating mentors is an investment every aspiring entrepreneur should not hesitate to make. At best, it can accelerate the path to your next goals. At worst, it can prevent you from making investments in products people will not use.
