Businesses Can Fail Even If Their Products Are Very Desirable
Running a business is based on 3 concepts. If one of these is not working properly, you are likely to fail.
I had told many times that entrepreneurship is about solving problems. It is about finding a product or a service that would address people’s needs.
Well, it is not only about that. This is the first fundamental step which we call it desirability in short.
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However, in order to run a business, you need 2 other concepts: feasibility, and viability.
Feasibility is basically the ability to build your solution. For example, let’s say that you found that 40–50 years old C-level executives in Istanbul travel to London or Paris a lot. Sometimes, they have to travel even further to far east or the US. Moreover, you discovered that they actually feel too tired because of the frequent plane trips, thus cannot perform efficiently when they get there. Now, you think that the solution would be arriving these destinations within minutes. How can we do this? Teleportation!!
Easy right? However, how are you going to build this system? No-one on earth has achieved it yet. So, you have the desirability but no feasibility. At the end, you don’t have a business.
Now, let’s say that you found a way to build a teleportation tool but many giant companies replicated it at the same time. Plus, the costs are too high in order to build such a device. So, since many companies do the same business, why would people prefer your device? If you make it cheaper, you can’t cover your costs. So, you can’t profit out of this business. This means you have no viability.
To wrap it up, to run a business successfully, you have to think about feasibility and viability as well. You can’t rely on your customers’ interest in your product.
Originally published at https://entrepreneurinistanbul.substack.com.
