The Visionary Tech-Investor's Route

Scenario

·         Have an idea: ü

·         You or your partner possesses a unique skill set: ü

·         Have relevant industry experience: X

·         Have relevant industry contacts: X

·         Have capital: ü

Strategy

How did you come across this idea? Do you want to build a product because you have the skill to do it or have you perceived a market gap, or you faced a personal challenge forcing you to think for an idea? If it is just your perception that a product or a solution to a problem as you conceived is needed, then the idea may be hypothetical and will require testing.

Engineers, more than often, fall in the trap of making a product which they can not make because it is needed by a market segment of potential buyers. Their emotional attachment with their creation often blinds them to see the uselessness of their product. So a genuine need in society must exist which your invention can address. Discuss your idea with potential users, in the most self-critical manner possible (click here to see how to validate your business idea)

Once a genuine need is identified, see the simplest possible solution to it, while using no or least amount of technology. Imagine if technology can improve the solution then will the customer pay for the price in exchange? (click here to see how to price the product).

Build a fully functional prototype (click here to see how to build a prototype), and show it to potential users who can give you brutally honest comments to improve. Remember, sometimes it can take years to refine a product to marketable levels. It’s manufacturing at a reasonable price, then it’s selling, developing a system of customer support, is an entirely different ball game.

If that requires investment, then see if your family, friends, or any relative can invest. If not then you will have to use the personal savings to develop the prototype. It’s very unlikely that any institutional investor like a venture capitalist would jump in to finance your R&D process. Consider finding an angle investor instead (click here to learn how to engage angel investors)

• See if a similar product exists elsewhere in the, 99.9% chance is that it might already exist, investigate to find it (click here to learn how to search for a supplier in an international market) if it does not exist then what has stopped others from bringing the product in the market.
• If a product exists, try to import it (click here to learn about to import in Pakistan), and become a distributor (click here to find how to become a distributor) of that existing product addressing the same problem you want to address. Think of manufacturing only when you have developed a sound customer base.
• If it’s a service, then find the necessary connections with potential customers to deliver the service. You might have to partner with someone who has the necessary connections.

Further, if your service requires help from third-party contractors, then better search for them as well. A prior connection with all stakeholders is a must. Focus on ways to build credibility (click here to learn how to build credibility) with the potential stakeholders before you begin to work with them. 

Once you are connected with all the stakeholders and can deliver a product or service to a target audience in your network (click here to know how to expand your network), focus on one customer at a time! Remember your goal is to gain experience in the market, customer behavior, and behavior of other stakeholders. 

Let growth happen slowly, and gradually, let happy customers bring more customers by generating positive word of mouth which is considered to be the best marketing strategy by business experts. Now gradually build your customer base while reinvesting profits. Hire people to help you only when you think you can't meet customer demand on your own! (click here to learn about hiring strategies)

Keep much of the cash safe for rainy days, and do not spend on anything which does not help your business grow by any means. Before investing in, one must work out how much one can afford to lose. Contrary to general perception, entrepreneurs globally are not gamblers, they very carefully calculate the risks, and try to minimize them as much as possible.

Your first goal should be to develop a cash cow for yourself, a self-sustaining business. Once you can achieve this, now evaluate if you want to put your business on autopilot or not (click here to see how to put business on autopilot) now you can experiment in new areas to further diversify your portfolio.