by Eric Tyira firstname.lastname@example.org
We’re going through a list of some basic ingredients of a recipe for success. These were:
- Product (or service)
- Problem you’re solving
When we think through these topics, put yourself into the shoes of the investor. They want to know the who, what, where, when, why and hows. Problem solving falls into the why. Why are you doing this? To make money? No. Again, that’s a result, not a reason. What problem are you trying to solve? That’s a why.
You’re wanting to create a cidery, or a winery or a brewery. There must be a reason. The most obvious is that the craft beverage you’re drinking is inferior and you want to bring a better product to the masses.
Or maybe you are a conventional farmer that wants to go organic and needs an outlet for less-than-perfect apples.
Or maybe you have an orchard location with a special feature that would naturally draw crowds anyway and cider would make a great addition.
Whatever the reason, you must be able to articulate it to the investor. Your investor is your very first customer and if they don’t buy your story, then how do you expect others to?
Often times, your why is the reason that can bring about change. How are you changing the world? What paradigm shift will result with your business out there? Can you create a movement that others will follow?
Your why may also come from your own background. Perhaps you were tormented by a bully as you were growing up and now your company will donate proceeds that help survivors of abuse. This means the business is a conduit by which you’re feeding your true cause.
Or maybe you had terrible bosses and you always knew you could do it better and this is your chance to hire people and be the boss you never had.
Regardless of the specific reason, you must be prepared to solve a problem. Making cider or wine or beer just for the sake of making it means you’re just another company making just another product in an already crowded market. Your why gives you cause. It gives you the reason to get up in the morning. It pushes you to go to work or school and continue to improve.
Solving this problem can be one of the major issues you’ll face. When you have your why and fully understand and communicate it, moving forward becomes much easier.