» Page 1 of 1

Where would we be without customers? The old joke is that companies would have it easier if it weren't for those pesky customers making demands—product compatibility, lists of desired features, expectations for service levels and support.

Of course, without those persistent customers, we'd all be out of business. The good news is that as a startup, you aren't burdened by the demands of an existing customer base. The bad news is without this pre-established base, you'll need to work even harder to understand your target customers, their needs, and concerns. Without a good solid understanding of your customers and what is important to them, you can't build and package your offering in the way that makes it easy to turn prospects into customers.

Too many young ventures follow the "if we build it, they will come" model of business development. That may work for baseball movies, but in real life, it's not that simple.

Here are five ways to help you get the right customer focus:

Targeting everyone is targeting no one. Startups have limited resources. No matter how universal the appeal, it just isn't possible to reach all the audiences who might be attracted to your product. Choose the one or two key groups that are the best fit for your offering.

Value is what the customer says it is. The features and functionality you're building into your new offerings aren't valuable because they use the latest technology, are faster, more powerful or more robust than existing alternatives. They're valuable only because the customer believes the resulting solution is something they're willing to invest in.

Ask and they will tell. Take the time to talk to your prospective customers. Watch them. Research them. Better yet, ask them to show you their existing process, and watch what works and doesn't work. Ask what they'd do differently if they had access to your offering. But beware: customers often decide the best use of an innovative product or technology is something its developers never envisioned.

Develop a clear, simple message. Your value proposition needs to be intuitive and to the point. Don't expect potential customers to work hard to decipher a complicated story. Keep it simple and straightforward.

Repeat, repeat, and then repeat. We're all bombarded with an overwhelming amount of stimuli every day from a multitude of sources. Your message may not reach the target audience the first or second time around. Or they may need to hear it multiple times before they're ready to take action. Don't be afraid to tell your message again and again.

The annals of startup history are filled with stories of failed companies who were well-funded, had innovative technology and developed creative solutions. Unfortunately, they didn't have enough customers who found their solutions sufficiently compelling to buy the products.

Doing your homework upfront about your customers will help you avoid a similar fate. Because as challenging as it is to live with demanding customers, life with no customers is no life at all.//

This article appeared in our current issue of American Venture Magazine. To have full access to all of the magazine's articles and features, click here to suscribe now!