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Let your customers design your business?

Filed in archive Bootstrapper Tips by Shawn Hessinger on March 22, 2008

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In a recent move at PostRanger.com, I invited readers to become involved in three of our newest products: Allentown News, Allentown-Bethlehem-Easton Metro and News of the Poconos.

The idea was a simple extension of the three news websites' main focus. E-mail original video or photos of former President Bill Clinton's visits to the Lehigh Valley and the Poconos for inclusion on the site.

As I pretty much expected on the first try, I got no response. But I'm still convinced about the importance of the approach and you will see more similar opportunities for user input, both for readers and perspective advertisers, in the near future.

It isn't the first time I've made a stab at this kind of user driven contribution.

Back in September 2007, when launching PostRanger initially as a new blogging social network, I tried to encourage mostly user driven content on the new site.

However, the design of TypePad, the hosting and blogging platform I'd chosen for its ease of monetization, proved less effective as a format for user driven content than, say, a Facebook
or MySpace.

I first became interested in the idea of user driven products and innovation owing to a post by Thomas Madsen-Mygdal on the topic leading in turn to a mini-on line debate about the subject.

I'm still convinced of the importance of a user driven component to the whole bootstrapping approach for a couple of reasons:

• User input is a great way to identify a road map for future action. If as Bijoy Goswami suggests, bootstrapping is about taking the right step at the right time user input can give an idea of what that next step must be.
• Input helps separate myth from reality when deciding on your business model. We've all heard people say they would gladly pay for a service when asked in a formal or informal survey, but user input is a more helpful follow through. A hundred affirmatives on a survey are not the same as a hundred active users/purchasers of your product or service. Seeking that input will help you sort out the difference.
• Customers know best how they can be served. But this may be only on an intuitive level. When asked their preferences much depends on the questions customers are asked, but customer activity cannot lie. If they contribute, visit, buy their needs are being satisfied whether they would consciously tell you they are or not.
• User driven input is more cost effective. Expensive research and development can still result in a product no one wants. Letting customers take part in creating a product ensures the final result is something they will use because their use was part of creating it.

Thoughts or comments? Is the blurring between entrepreneur and customer anything new or have the best entrepreneurs always been those who allow their customers to help build their products instead of trying to anticipate their needs? Answer in the comment section or become part of the discussion on our Bootstrap Yahoo! or MySpace groups.


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Permalink: Let your customers design your business?
Tags: Bill  Clinton  PostRanger.com  bootstrap  bootstrapped  bootstrapping  business  startup  entrepreneur  entre 

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