Many start-ups fail because their own belief in their idea or product has not been thoroughly tested with their target markets. Stepping back to confirm that the product/market fit works and the market is big enough are important checks to ensure that any required adjustments are made before too much time, energy and money is spent on ideas which won’t be commercially successful.

It can be tempting to seek to maximise your sales by trying to penetrate too many markets too soon, stretching your team too thinly with hit-and-miss results. Being clear on which target market geographies and prospects you will focus on is vital. A laser-sharp focus is essential to generate sustainable commercial growth that builds long-term value for your company.

Once your Product/Target Market Fit is confirmed, it doesn’t mean you will automatically be successful at selling. A ‘one-size-fits-all’ approach doesn’t always work because different customers can have different needs. Differentiating your offers and business models by market segment to create more value for customers than your competitors’ offers means being able to charge more for them. Sustained differentiation is a way to stand out over your competition.

It is important to start by clarifying where your business will be at time of the exit, and what is your exit strategy. Then, the business journey of how to get there, with its different stages of growth, should be clearly outlined as Commercial and Technology Roadmaps.