Welcome back to our Vision Gap series. Today we’re delving into the world of spinouts.
Spinouts refer to businesses with traditional models seeking scalability through the conversion of internal knowledge or processes into marketable products. These products can target existing customers, new customer segments, or even competitors, offering solutions derived from the originating company’s insights or methodologies.
Scalability is the golden egg in business growth. While service companies face challenges in scaling, spinouts offer a pathway to rapid revenue expansion. By transforming services into products, companies can potentially outpace expenses, propelling growth.
In previous episodes, we discussed finding and vetting ideas. But now, let’s dive into understanding the market landscape before taking the plunge. Market research is the bedrock upon which successful spinouts are built.
When exploring the market, it’s crucial to identify direct competitors, alternatives, and indirect competitors. Direct competitors target the same audience with similar solutions. Alternatives offer different but comparable solutions to the same audience. Indirect competitors may have the same solution but target different market segments.
Researching the market involves various approaches:
Once data is collected, it’s time to evaluate competitors. Consider factors like market share, pricing, product structure, brand reach, customer opinion, customer service quality, target markets, key customers, and industry leadership.
For deeper insights, analyze competitors’ features. Identify common features, gaps, and opportunities to differentiate your product effectively.
Next week, we’ll discuss prioritization and roadmap building, crucial steps in transforming research insights into actionable plans.
Market research forms the foundation of successful spinouts. By thoroughly understanding the market landscape and competitors, businesses can identify opportunities, mitigate risks, and develop products that resonate with their target audience. Stay tuned for more insights in our upcoming episodes!