Spend a lot of time talking to clients. And how they have been alleviating, avoiding or solving. It themselves until now; Create a first minimum viable product with. Which to test Often the problem with the aim of establishing. If it really matters to someone and if it has been understood correctly from the startup. Repeatedly use the product to validate the proposed situation and if the client is willing to pay for it.
A good business can be started
Without having to resort to investors, financing itself through the clients themselves . The first thing that an entrepreneur must keep in mind is that searching for an investor is only one possibility, but not the only one. The main source of financing is his clients, the money they pay company data him. Professor John Mullins, from the London Business School, has identified and analyzed the five main financing formulas for clients.
The objective is to get clients to pay in advance a part or, at least. Advances, provisions or payments on account. From Dell to travel companies, or more recently by coupon and offer websites such as Groupon. Rupali or Offeror, in which the customer buys today. A product or service that they will consume sometimes. months later.
Often The customer agrees
To purchase a product or service. In the United States they have reached. All types of basic and not so basic products for repeated consumption. Such as razors, underwear, organic menus or even dog food. An interesting modality of this subscription model is SaaS, from the English Software as a Service or sale of software by subscription.
This tactic is especially useful in retail. Where many stores manage to pay suppliers in a deferred manner and. Therefore, after having collected from their customers. Zara is the IT Email List best global example of how to use scarcity to grow spectacularly. Without requiring significant investments in a sector like fashion.
In France, Vente-Privée and in Spain.Privalia have been responsible for bringing the scarcity model to the online world. selling top brand clothing and accessories online with strong discounts, always in limited quantities and for limited periods of time.
