| | SEPTEMBER - 20239immediately proceeds to invest tens of thousands of dollars into product development.2. They later find out that nobody really wants their product.Scenario Two:1. Startup founder thinks of a new product idea and asks potential customers if they like it before proceeding to invest tens of thousands of dollars into product development.2. They later find out that although some potential customers like their product, none are willing to pay the price for it.In both these scenarios, the startup founders failed to accurately determine their potential customers' willingness to pay and their ability to pay. This resulted in them exhausting their cash reserves to build a product that nobody wants. The solution to this is to conduct a proper market research and to ask potential customers the right questions before investing in product development. It also helps to have a business mentor who can help you navigate through the early difficulties of building a startup.Overcoming Marketing ProblemsSecond-time entrepreneurs have usually learnt their lesson and now focus on activities that bring in the money. They have understood the importance of cashflow and managing their finances properly. However, they might not be able to grow to their fullest potential if they do not have a proper understanding of their unique selling proposition or if they do not adopt proper marketing systems.Scenario Three:1. Startup founder thinks of a new product idea and asks potential customers to pay a deposit or sign a letter of intent before proceeding to build a minimum viable product. 2. Once the product is launched, full payment is collected from their early supporters and the startup eventually achieves profitability.3. However, due to stiff competition, the startup finds it difficult to scale beyond a certain size or expand out of their local market.In the above scenario, the startup founder has managed to overcome the birth pangs of founding a startup. The challenge now is to identify a niche area where it has competitive advantage and invest in marketing to grow its market share. There are two possibilities if this is done properly. The first is that a larger competitor might acquire the startup in order to gain market share in that niche area. The second is that the startup might raise funds and compete to become the leading solution provider in that niche area.Focus on Customers for SuccessI have met many serial entrepreneurs and successful business people. These are people who have built amazing companies from scratch and later sold them for a handsome profit. One thing they all agree on is the importance of knowing your customers well. If you get a chance to speak with these people, you can immediately tell that they have a very deep understanding of their customers and the industry that they are in. There is no magic formula, they get these insights by putting in effort to conduct hundreds of customer interviews and speaking with their existing customers on the ground.Previously at Meet Ventures, we ran a 6-month certificate program together with National University of Singapore Business School (QS World Ranking #8 in 2023) to train more than 200 aspiring entrepreneurs. A study was conducted which found that the program participants who focus on their customers actually achieved better results than those who did not.This shows that having a good understanding of your customer can actually become your competitive advantage and increase your chances of success. It also explains the saying that third-time entrepreneurs focus on customers. John Lim Jian DaA wise man once told me that `First-time entrepreneurs focus on product. Second-time entrepreneurs focus on money. Third-time entrepreneurs focus on customers
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