Part of the Who are You series

Have you seen the show, Shark Tank? If you have, I bet you think it’s aptly named.

People pitch their business product or idea to a panel of self-made millionaires and billionaires (the “Sharks”). The Sharks decide if they will invest in the business.

Talk about a tough crowd.

Mr. Not-So-Wonderful and the other Sharks grill the presenting entrepreneurs. The reality TV show is a budding entrepreneur’s dream – or worst nightmare.

Could you take on the Sharks with your business product?

First Business Product Question – Who Are You?

Before you swim with the Sharks, you better know who you are as a business.

How many times have you stumbled over your reply when someone asks you what you do?

Whether your business product is a physical product or service, defining it is not as simple as it sounds. The following three questions may help frame your definition.

 

This post shares ideas for defining your product/service (1) and identifying what problems it solves (2). A future post tackles what’s unique about your product (3).

Defining Your Business Product

Most advice I’ve read on defining your product starts with identifying your audience. While I agree that is a deal-breaker, what if your business product makes no sense?

One of the strangest pitches on Shark Tank was the Ionic Ear product. Its inventor thought having the Ionic Ear surgically implanted was a great idea as it would replace cumbersome Bluetooth headsets.

• Yes, you read that right – surgically implanted.
• Product upgrades meant new surgery.
• Sound like a good idea to you?

Let’s assume you are just starting out or developing a new business product. It starts with an idea (as illustrated below).

I suspect you would not be surprised to learn the Ionic Ear was never tested. Can you imagine volunteering for that test?

Does your business product make sense?

Yes, even a product that makes sense can fail. But fixing the reasons for a product failure is easier than fixing a product no one wants or needs.

Problem-Solving

Launching a business product is like the chicken or egg debate.

• Which comes first?
• Defining the product?
• Or identifying who would buy it?

Certainly, there is a cross-over, but how do you create a product if you don’t know your customer?

Understanding what problem your product solves helps define it. And that involves understanding people.

At this early stage, you simply need to ensure there is a problem that your product solves, such as one of the following.

• Saves time
• And/or money
• Or maybe their sanity

Customers may not even know they want your product. How many smartphone users today knew that’s what they wanted 20 years ago?

Does your business product bring value to your customer?

Swimming With Sharks

The Sharks eat entrepreneurs alive who do not know who they are as a business. The successful Sharks routinely start by asking the following.

• What inspired the idea?
• What value does the product deliver?
• What’s unique about it?

That’s the first test the entrepreneurs must pass. Then they move on to the deep waters of tough financial questions.

Could your business product swim with Sharks?

Resources

Do you want more information about developing your idea? The following are a few articles you may find helpful.

• How to Create a Winning Business Idea–in Six Easy Steps – old but relevant – in my humble opinion – kind of like me 🙂
• Need Inspiration? Eight Methods For Coming Up With A Great Business Idea – a not-so-old one
• Here’s How You Develop a Successful Business Idea

For the innovators of the world, I like this 8-minute video, How Do You Define A New Product Category? by Jesper Sorensen, Faculty Director of the Stanford Institute for Innovation in Developing Economies (SEED).

Guide for Defining Your Business Product

Following a Stanford professor is probably not my brightest idea; however, below is a quick template I developed for defining your business product. The guide can also be used as a reality check for an existing product. I welcome your feedback.

Click here for your pdf copy ===> Defining Your Business Product

What suggestions/resources do you have for defining your business product?

Note: The next post explores ways to discover what’s different about your business product.

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Canva Credit

Note: This post originally published on January 25, 2016. This August 9, 2022 version updates it.

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