entrepreneurial team often confused "demand" and "market" difference, basically, but the market demand is the demand, which in addition to demand exists, but also a supply through the consensus price intersection transaction, in order to form the market. Simply put, there may not be a demand for the formation of the market, it depends on the supply and price; in turn, only the supply and demand does not exist, or supply and demand, but there is no consensus on the price, the market does not exist.
is very simple, but I often find most of the team did not put emphasis on talking about the "market", but about "needs", even the demand did not touch, just talk about what you do, what you want to do, as if the product or service to make it sold out, which of course is not mature business point of view, but in fact most of the team is so.
Those closely involved cannot see clearly. is a normal thing, even if I venture a few times, often heard the idea will instantly into "excessive enlarged" myth, once thought can contact the market is huge, can meet the needs of many, but in fact there is only a small number of consumers can use the product or service among these, the biggest problem is that the consumer is less, but that you don’t know where this group of consumers.
Wait until the
carry on regardless of personal danger turned out to be a search to see light suddenly, this group of people have to spend a lot of money, but the growth rate can not keep up your burn rate, I began to suspect that the original idea is really so good, it is still the old one, just think you want to do, think. Very good, but this is the supply side, the manufacturing side thinking, completely ignoring the "demand", not to mention what is there that you think are the "market".
here’s a recent friend’s case, he happened to know more than a month ago, had a distant relative is in the apple, excellent quality and delicious, when he understood the apple retail price and the production end is not a small gap after their rise to a number of apple to sell directly to the idea. He thinks he has a huge cost advantage, through the Internet to sell should be able to have a lot of profit, so come and talk to me about his idea is not feasible.
so I asked him if he knew the apple retail market for more than a year high value? There are several commercially available apple? Most consumers are where to buy? Is the vegetable market, supermarkets, convenience stores or other? What are the people to buy? What is the reason to buy Apple or demand? Not the same variety about apple fall at what price? If the majority of consumers in the physical channel to sell, the virtual channel is
plus or minus points?
he listened to my question, suddenly froze, do not know how to answer. But he’s such a situation is fairly good, because at least "Apple retail market" exists, that is to say the worst case, he is go to the market to rent a small stalls selling apples, no matter how bad a day should have a hundred dollars income, cost-effective is another matter. But a lot of the team is doing a product.