When building a startup company, there are steps you will need to take. But before you get into constructing the business plan, there is one question you should first address; am I solving a real need, or a perceived need?
It's easy to get carried away with a great idea and bypass whether or not there is a realistic demand in the market for the product or service you want to create. This is especially true if it is something you are passionate about. Passion can be good, but it can also cloud judgement. Before you put in the work, it is important that you first assess the need for your hypothetical product or service.
To determine this, ask questions such as:
- What problem does my product/service solve for customers?
- Are there similar products/services already on the market?
- Have I identified a unique opportunity that others haven’t?
Answering this question in the early stages of development will save your startup time and money. It will also help you figure out whether or not you should move forward. Once you’ve determined that your product or service is solving a real need, you should feel comfortable constructing your business plan.