Most new businesses fail. They typically fail not because they can’t deliver value, but because they can’t capture enough of that value to turn a profit and grow. Capturing value requires a clear value message and an appropriate pricing policy.
Unfortunately, most entrepreneurs do not create a detailed value message and pricing plan. They start with a product (or service, I’ll use the word “product” to refer to either), or even a technology and then they seek customers for the product. Then they try to sell those potential customers on the benefits of the product. Often, this involves a comparison with a better known competitor: “It’s like ACME’s offering, but better, and it’s cheaper.”(Read the rest of this post is over on the Bootstrap Austin Blog.)