Every company starts with a carefully thought-through business idea. At the beginning, several aspects are to be considered and it can be tricky to know where to start. T2inc.ca has adopted the ‘’lean start up’’ approach and here is a business tip for you: we totally recommend it!
This approach, developed in Silicon Valley, is specifically dedicated to economic activity start-up and product launch. Let’s go through the different steps of this approach.
First step of the lean startup approach: validation of a potential market
The first step is to test to waters before putting in place your idea. Is there a market for the products and services you want to sell? Indeed, even if you have all the necessary funds to create your business, it will never be prosperous if there is no demand for it.
The majority of small businesses that are forced to close do so because they struggle to reach the target market. So it’s self-evident that you must properly carry out a market research before investing thousands of dollars in your business. If you would like to get some advice, you should refer to professional tax accountants that offer training on business startups and administration.
Continuing with this approach: undertake a market research
With the lean startup approach, like with many others, it is necessary to do a market research. Here are the steps to take for a profound market research. It will save yourself from unpleasant surprises.
Evaluate your competitors
The first step consists in knowing your future competitors and evaluate their offer. This way, you will have a global understanding of your industry by knowing your competitors by heart.
Do an internal analysis
Then, do an internal analysis of your strengths, weaknesses and available resources (team, equipment, financing, etc.). Reflect on the position you are able to take in the market, without overlooking the biggest players. Indeed, they can afford to offer products and services at a very low price. Once you have found your place in the market, you can move on to the next step.
Visualize your typical customer
The third step will be to visualize your customer, the person who is going to be interested in your offer. Make a list of their needs, desires and behaviour. It’s important that you have a clear picture of your typical client.
Contact your target customers
Then, directly contact these target clients. Explain them that you’re in the process of starting up your company and that you would like to ask them a series of questions on an ideal offer for them. In exchange, you can tell them that you’ll give them a discount when your products or services are available. Thus, you’ll already be creating customer loyalty.
This last step is essential before implementing anything. Starting and owning a business is a colossal challenge, but talking to potential clients to analyze the demand is a crucial and beneficial step in the process.
How to elaborate a project prototype with the lean startup approach?
After thoroughly studying your market research, it will be time to create the first version of your project. The data collected in the four steps of the market research will allow you to create your minimum viable product (MVP).
The objective of a MVP is to create a first prototype of the product and immediately start selling it. The idea is to test the product and sell it at a lower price, while continuing to develop it, according to the feedback and advice you get from your first customers.
Since most companies go bankrupt because they cannot meet the needs of the market, it is fundamental that you understand them. Hence the importance of doing an appropriate market research before developing a product that could be obsolete in the customers’ eyes.
So, when starting your business, don’t hesitate in talking to future clients and collect their opinions. You are there to help them with your products or services, so you should not be scared of contacting them.
To start your company on the right track, get experts advice
All in all, the lean startup approach can be very beneficial for your project. It will allow you to be open-minded, to adapt yourself to the market and to accept new ways of improving your business project, products and services.
If you need help starting your business, don’t hesitate in contacting us! The professionals from T2inc.ca will help you carry out your business project and guarantee the success of your idea!
Frédéric Roy-Gobeil
CPA, M. TAX
As President of T2inc.ca and an entrepreneur at heart, I have founded many start-ups such as delve Labs and T2inc.ca. A former tax specialist at Ernst & Young, I am also a member of the Ordre des comptables professionnels agréés CPA and have a master's degree in taxation from the Université de Sherbrooke. With a passion for the world of entrepreneurship and the growth mindset, I have authored numerous articles and videos on the industry and the business world, as well as on accounting, taxation, financial statements and financial independence.
