Should you try to disrupt the
status quo by introducing a product or service which serves a need that is not
already being met, be sure that your idea will work and be profitable. Else,
you are saying to potential investors:

I am trying to make money in a way that has never
been done before. I don’t yet know if you will get a return on your investment
but just trust me, I’ve got this!”

Entrepreneurs
take risks, daily. If disruptive models such as Uber and AirBnB
have succeeded, so could yours. However, for a new business idea, before
seeking financial support for your business, ask yourself: “If this were
not my idea, would I invest in it?


Every business is started with many
presumptions: that the solutions you create are acceptable and appreciated by
the people who need them, that buyers will be willing to pay for them, that
enough people will be willing to buy to make the business sustainable. The one
who creates with passion often over-rates the relevance or value-creating
capability of his solution.


An example of this business model is subscription-based
service provision such as Direct Broadcast Satellite Provider [DBSP] TV
. This is a service where consumers set up a subscription and never
have to worry about lifestyle-enhancing services. If they are patient, and not
fussy about watching a new box-office film within days of its launch, they know
they need not go to the cinema. Their
DBSP will soon feature it on its fare. Advantages of this business
model include:

·       
The purchasing
process is taken off the consumer’s hands.

·       
Users get a
multitude of products in timely manner every month without worrying about
reorder.

·       
With an
efficient inventory control system, the provider can manage multiple users and
assure recurring revenue while building a strong relationship and better
negotiating power with suppliers of the content.


But the model could not remain unique
for long, is now trending. Competition usually becomes steep when other
businesses recognize the value-adding and therefore, profit-making potential of
an idea. Global servers such as Netflix now share the
entertainment space with local competitors.


In the Nigerian Pay TV market, price
and quality of content determine which service provider is preferred by subscribers.
Options include DsTV, Startimes, Daarsat, Play TV, GOtv and
others.


Entrepreneurship is often about disruption. You
need guard
against thinking you know what is best for buyers, keep testing the market
readiness of your idea. Talk with customers early and often while building –
checking customer preferences is a never-ending process. Ask for their thoughts
on advantages and disadvantages of your solutions – they may offer
alternatives. Even if your offering is attractive,
would people
want to pay for it? How sustainable is it?
It is interesting to note that some DBSPs, like Kwese, Montage, ACTV and Tstv which
started out well are no longer in operation.

A business idea fails which does not overlap with
customers’ desires and ability to pay for the product.

Profit is people paying you more than you spend creating the
product, therefore, even if you consider your offering as the best thing since
sliced bread, keep an eagle eye on those sales
figures
.

 

#entrepreneurship

#startupbusiness

#EnduringWealth

 

To
contact the ‘Enduring Wealth with Mopileola’ Team,

Visit our Online Portal to learn more about us and book
Entrepreneurial Workshop titles to build the capacity of your team:

www.enduringwealthcoach.xyz

Email us at enquiries@enduringwealthcoach.xyz


Like us on Facebook:
The Enduring Wealth Company
https://fb.me/enduringwealthcoach


Follow us on Instagram:
https://instagram.com/enduringwealth.co


View our WhatsApp Group wall, if you like what you
see, join us.

https://chat.whatsapp.com/6eNRrwkToLsIsM2DSsuieU


Search for ‘Enduring Wealth’ to watch our YouTube
channel. Do not forget to like, subscribe, and share with your contacts.


Follow Mopileola Amusu on Twitter
https://twitter.com/Mopileola/


Want to join the EWM Family to enjoy access to all our freebies,
including a capacity-building workshop which holds every Tuesday?

Please fill this form:
https://docs.google.com/forms/d/1EyaTFkpq9RSMgIXbd10dktO1UhqS5ofaagUqy4clSLw/edit?usp=sharing


We would love to meet you and know the business you
are in.