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As I have already mentioned in the previous blog, after having created a list of tasks we focused on the ones which were necessary to be fulfilled with regard to the competition. Right at the beginning we realized we could not continue without gaining certain information. Therefore, we got down to analyses, which I recommend to anyone who makes a project.
Besides the fact the investors will be asking about it, the information we found was highly useful in the process of project creation as such. Even though you may not find it very productive, it is always better to devote a bit time to it because without information of quality it is difficult to create a product of quality. This is the reason why you have to define questions you need answers to.
1. What is my Unique Selling Proposition?
USP is an advantage which distinguishes you from the competition and gives buyers reason to purchase your product. It is also an important marketing element helping you to differ from the competition. Not only can it be the central motive of your marketing, but also of the presentation for investors. In our case, we have several USPs:
- specialization in frontend
- immediate code modification by entering a www address
- our own supporting technologies such as gomobile or JS responsive
2. What is my target group?
In our case, these are programmers focusing on frontend, which is also one of our USPs (specialization in frontend). However, such coincidence may not occur every time. In any case, it is necessary to determine who the product is aimed for, so that it is possible to meet the needs of a given group. To make a huge “turbo-machine“ with a huge number of functions without customers‘ feedback is just going up a blind alley. To back it up with some numbers, we relied on research companies like Gartner or IDC, which do worldwide research regularly. Nevertheless, you must understand these numbers serve just to determine the potential of a target group and whether there is enough space for its growth.
3. Which market should I focus on?
The research showed that the highest number of developers can be found in the USA. But besides numbers, we also took various relations into account. We focused mostly on the country ecosystem. A great advantage was that we had opportunity to consult issues with experienced people, which I recommend to everyone. At least one or two external opinions can help. We took some advice and decided to target Great Britain and the USA thereafter. The sizes of our target groups for the two countries are following:
- the USA: 2 mil. programmers
- GB: 1.5 mil. programmers
Despite the fact the target group in the USA is bigger and the environment is more favorable, a lot of factors are also in favor of Great Britain: the proximity of the market and the negligible time zone difference. This means we will not have to deal with problems regarding support in the evening hours and as GB is a EU member, there will be smaller administration burden. Moreover, the whole system of GB is more familiar to us than the system in the USA.
This is one of substantial strategic changes we have carried out since we started. Some more changes will certainly occur, but we are ready to react to such situations. And this is crucial in my opinion. Because when you do something innovative, you often cannot forecast what might happen. However, you can influence your reactions to changes and the result will depend on it.
Segment potential – SaaS / cloud
We also defined the segment we work in so that we could determine again the potential of the current state and of the future growth.
You may think these numbers do not say anything or that they are too general. But try to imagine yourself in the role of investors. What would you expect from the team you would invest your money in?
Were I an investor, I would expect a certain method of working and thinking which would represent a given team. I would like to see the ability of the team to work reasonably and with discipline as well as the ability to bring things to a successful conclusion. So the presentation itself along with analyses show your attitude towards the project and towards documents which serve to build an initial trust in you and your team on the part of investors. Well, these are my speculations. Let’s see what the reality will be like.
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