Tag: sales

How to Generate Product IDEAS

by jcafesin, posted in Entrepreneurs, Entrepreneurship, Small Business Marketing, startup, startups

Need an IDEA [that will likely SELL] to Startup?

Many want to be entrepreneurs, but most people lack product ideas, or can’t think of a service (or app) that isn’t already available.

For over a decade, I taught entrepreneurship at Stanford and Cal Berkeley/Haas. I designed a course to teach the process of turning an IDEA (or product in development) into an offering that SELLS, and building sustainable startups.

Below is the 1st CHALLENGE in the course. It is designed to teach the PROCESS of PROVING an IDEA will sell BEFORE (taking the time and investing the money) developing it.

CHALLENGE #1: Generating PRODUCT Ideas

If you already have an idea (or product in development), skip this CHALLENGE. Focus your learning through the process of validating your existing IDEA.

It is highly recommended that you have an idea to actualize, in order to realize the full potential of this course. The idea is less important than working the process, so don’t dwell on creating a brilliant offering, or even one that you will produce right now (if ever). Learn by engaging in the process, and you’ll be able to actualize most any idea you have now, or any that may come, by simply following the steps of the RAF Method, in order (kind of like working a math equation ;-).

Imagine creating something that solves a recurring problem. Now, come up with a basic (even vague) idea of a fix for your recurring issue…

1. THINK of at least five (5) PROBLEMS you frequently encounter, and create a document titled: “MY FREQUENT PROBLEMS.” Number each problem as shown (though your LIST does NOT need to be by priority).

Examples:

  1. Trash bags that don’t fit or stay fixed to the rim of the can.
  2. Spending an hour or more online looking for a movie you’ll actually like (since Netflix’s rec engine, as with all streaming services, only recommend the content they have).
  3. Xfinity’s internet access that keeps crashing while you’re watching the movie it just took you an hour to find.
  4. Your kids are not doing well in school.
  5. You have no one with whom to share how you really feel, and you can’t afford therapy.
  6. You get tired by 3:00p.m. and want a wake-you-up, but slow burning energy snack.
  7. You can’t get a good job without work experience. And you can’t get work experience without a job.
  8. You know it’s unhealthy for your dog to be locked inside all day, but there’s no way to let him run and play during your workday.

2. LIST [at least] five (5) SOLUTIONS to your list of problems.

Examples:

  • 1a: Trash bags made to fit a variety of can sizes, with a 3” wide rubber-band around the top.
  • 2a: An app that figures out individual preferences for movies and recommends platforms with your desired content.
  • 3a: Some issues we can’t do anything about. If Xfinity is your only internet provider (as is ours), you’re screwed.
  • 4a: Software that recognizes bottlenecks in learning, and dynamically provides content geared to what student likes or will engage with.
  • 5a: Chatbot specifically designed to engage in therapy, available when you need to talk 24/7.
  • 6a: My organic, low-fat, gluten-free, great-tasting cupcakes and scones.
  • 7a: A platform, both online and live meetups, that matches students or recent grads with corporate internships.
  • 8a: A P2P service of local, professional pet care advocates, from doggie daycare to personal pet assistants.

3. Pick ONE (1) of your SOLUTIONS. Use the solution you’ve discovered in this challenge as the IDEA you’ll validate and market for profit throughout the LSM workshops. Walking the RAF method, even with an IDEA that you’ll never actualize, teaches you the PROCESS of taking any IDEA, and PROVING it will sell BEFORE developing it.

CHALLENGE #2: Generating STARTUP Ideas

Unlike finding solutions to problems, as in CHALLENGE #1, in this exercise you will begin with what you enjoy doing. While I’d like a trash bag that stays on the can, I wouldn’t find much joy in developing this particular product, as I have no interest in plastics, rubber bands, or trash.

To endure the missteps and do-overs required in launching any business takes real tenacity, that will be challenged again and again with each disappointment. You’ll want to give up, but don’t quit! You’ll learn to iterate (or pivot as they say in the Valley).

It’s important to build your business around something you enjoy doing, a task you [generally] like to perform (whether you’re being paid or not). A job that engages, excites, will help you weather the onslaught of hardships, as you’ll be iterating on what you already enjoy doing.

1. LIST three (3) of your top interests. Be as specific as possible!

What do you love to do (or even like to do)? Are you a gamer? An athlete? Like to bake? Shop? Read? Enjoy traveling? Gardening? Crazy in-love with your dog, or cat, or parrot?

2. LIST [at least] five (5) things you like to do — activities you enjoy engaging in. Don’t worry about how profitable they may be. Just list what you enjoy doing. Note, you won’t always enjoy even tasks you generally like.* I’m a writer, and often find the writing process frustrating, but overall I love to write.

3. Come up with ONE (1) IDEA for a product or service that’s in-line with one [or more] of your interests and/or pleasures.

Examples:

  • You’re a gamer and have an IDEA for an MMOG that’s better than World of Warfare.
  • You bake the best scones on Earth, and you want the world to taste ‘em.
  • You’re a science fiction fan, and want to share your thoughts on movies, shows and other finds on an All Things SciFi podcast.
  • You’re an avid reader and want to share your thoughts on a literature review blog.
  • You love real estate and want an app that gives all the information about a property instead of the current platforms like Redfin hiding critical data.
  • You love your mom, and she need someone to take her to her doctor’s appts, shopping…etc. — Uber meets vetted and qualified (medical, financial…etc. pros) on-call personal assistant.

Use ONE (1) IDEA to actualize through the RAF Method, and create offerings of value, for profit, with a job you’ll love to do, daily.

*You won’t always get to do things you like when validating and actualizing IDEAS into products for profit. You’ll have to take on job functions you hate, but are necessary to launch and grow any business. I love to write, but I hate marketing my work!

The Psychology of Marketing

by jcafesin, posted in Uncategorized

I teach my students at Berkeley and Stanford that the foundation of marketing is psychology. Marketing is manipulating people to do what we want, so to get people to do what we want, we have to understand how they think, what they feel, and why.

I also teach that the foundation of psychology, what motivates all of us to do whatever we do, is self-interest. I explain that even saints like Mother Teresa, who spent her life feeding the poor, caring for the sick, did so out of self-interest. Mother Teresa was not altruistic. There is no such thing as Altruism. It is a religious construct to motivate good deeds, to get people out of our own heads, even for a moment, to consider others.

Many students, especially believers of religion, have a problem with this lecture. And, no doubt, many reading this blog are bridling right now. “Of course Altruism is REAL. It’s what we strive for, our highest attainment— to give selflessly, because we are fundamentally caring, loving beings.”

Not so much. We are fundamentally self-serving.

And this is NOT a judgment call. This is a fact of human nature. What can be judged is what we DO with this fact of our nature.

I teach self-interest religiously with every Marketing lecture I give. As Mother Teresa spread the word of Christ around the world with every sick child she fed, she was fulfilling her function as a nun. And her brain rewarded her efforts with Dopamine, Serotonin, Oxytocin— ‘happiness’ hormones that made her feel good. In the face of that kind of poverty, I’d be crying daily. I don’t do what she did because it would not make me feel good in any way. I’d be profoundly sad, every day, knowing Christ will never save these children. People are going to have to do that.

We ALL act in self-interest. We scoff at Chevron fracking as the height of corruption, yet we blithely ignore our roles in global warming by driving SUVs we don’t need, or leaving lights or electronics on all the time because we’re too distracted to turn them off. Or we drive while on our cellphones, and cause over 1.5 MILLION accidents annually, and KILL, murder, 9 or more people A DAY so we can check our Instagram or Tiktok feeds.

I teach Marketing, not Morality, I tell students who balk at my contention our motivation, without exception, is self-interest. It is important to tell them this fact about us, this truth, giving them the ability to produce effective advertising down the line when they begin marketing their startups. To get people to buy into your product, service or message, you must understand their psychology— what they think they need or want, and why, then offer them solutions to their issues and desires.

Bernie Madoff did it to a lot of greedy people. He fulfilled their desire to get rich quick without effort when he convinced them to invest with him. Purdue Pharma fulfilled the desire of people in temporary and chronic pain, while simultaneously fulfilling the greed of medical professionals with kick-back payments that turned doctors into drug pushers.

Humans are self-interested beings. What we do with this fact is what matters, NOT that we ARE.

On the other end of the spectrum, Toyota fulfilled the desire of people interested in preserving our planet when they invented the Prius. And Tesla and other car makers have done the same with their all electric vehicles. Toyota and Tesla produce the cars they do to make money. And while serving themselves, they are moving closer to serving the greater good, by producing cars that have low emissions. Even better than electric cars, is solar and wind to power them, since over 60% of our electricity still comes from burning coal and other fossil fuels, which continues to do immeasurable damage to our planet.

Martin Andrew Green is an Australian professor at the University of New South Wales who’s dedicated his career to developing solar cells. Mr. Green’s self-interest is scratching a mental itch. He’s curious about light energy, and in learning how to manipulate it, his brain rewards him, makes him feel powerful, smart, valuable, serving his emotional needs.

Self-interest is NOT a curse. It is simply a state of being… human, in our case, but self-interest seemingly dictates the behavior of everything else that lives on Earth. Survival of the fittest is how species last over millennium. Not survival of the kindest, whatever ‘kind’ means. With every mouthful of food, every article of clothing, every vaccination Mother Teresa provided the sick and poor, she also fed them Christianity. She was not kind in spreading gospel that Jesus saves their souls. Instead of teaching the value and necessity of socially responsible behavior, which would have served the greater good, preaching rewards in the afterlife does not serve the living or their future.

There is no need to fear the fact that human behavior is driven by self-interest. Regardless of the religious allegory that Altruism is not only real, but mandatory for society to function, self-interest does NOT need to manifest as narcissism. Green, or Toyota, or the parents who work to provide for their kids, or helping a friend in need, most of us contribute to supporting our society or there would be no human race at all. We have no great physical strength or stealth prowess. Building communities, exchanging ideas and skill sets, being here for each other is all we have to sustain us.

We all have the capacity to be giving, generous, thoughtful beings. Our motivation is irrelevant. It is our ACTIONS that determine our morality, whether we are contributing to creating a society that thrives, or participating it our own demise.

Self-interest is encoded in our DNA, and is not a threat to humanity, but a valuable characteristic, a useful asset. We just need to lengthen our time horizon beyond our own lifetime, broaden our self-absorbed view. We must learn that acting ‘altruistically’ means recognizing our impact on each other and this planet, and that accounting for the needs of others as well as our own IS in all of our self-interest.