Should You “Create New Demand” For Your Business Or “Not”?

For a business to succeed, 

1️⃣ It should either already have demand/ need or

2️⃣ The entrepreneur has to create new demand. 

Which approach should you choose as an entrepreneur? 

Here’s some help on how to decide that.

TL;DR

🤔 What benefit do you get by creating demand for a new need in the market for your business?

❌ Disadvantages of creating new demand in the market 

🤓 How to choose the right strategy for your business 

What benefit do you get by creating demand for a new need?

1. You’re the 1st mover

You are the creator of that need. So, 

Your business gets the early customers,

Your brand becomes the 1st in the market. 

Let me ask you 2 questions. 

1. Who is the 1st man to step on the moon? (I know, I know! It’s Neil Armstrong 👨‍🚀)

2. Who is the 2nd man to step on the moon? 🤔

I don’t think you’ll need more examples to understand this. 😉

2. You get higher revenue and profit 

You get more customers, because people already know your brand. So, you get higher revenue and profits too. 

Disadvantages of creating new demand in the market/ Disadvantages of the 1st mover strategy as a Startup Entrepreneur 

1. High risk of failing  

If you have to create new demand for a business idea, that means, it’s not yet tested. Nobody knows whether they actually need your solution or not. You could be spending all your time, money, effort and resources for nothing. 

2. It’s costly and it takes a long time to earn revenue 

To create new demand as the 1st business in the market, you need a bigger marketing and sales budget in order to create awareness on the problem and then about your business as the solution. This is very time consuming and requires a big investment initially. 

3. Benefit of your investment goes to others

You put all your resources to create a new need in the market and still fail, because people didn’t want your solution. 

Then, after studying your solution and why you failed, new businesses will come to the market. 

They don’t fail, because they are using;

• The need you’ve already created, 

• The customers you’ve already served or liked, 

• The pivoted solutions and strategies avoiding your failures. 

Now who actually wins the game here? 

1st mover or the 2nd mover? 

Facebook isn’t the 1st social media network in the world. Those were MySpace and Friendster. They created the demand, but failed due to other reasons. 

Facebook gained the advantage and became successful. Now, you and I know Facebook as the 1st social network in the world. 

How to choose the right strategy for your business

1. Similar solutions in other markets 

This is 2024, the era of AI, not the Stone Age. It’s highly unlikely you’re the 1st mover to the world. You may be the 1st mover in your market (eg: country), but not in the world. 

If there are similar successful businesses in the world and you’re certain you can find early adopters from your market, then becoming the 1st mover is the best way to go. 

If there’re similar successful businesses in the world, then you don’t have to reinvent the wheel, but use the same strategies, same features, same technology to test, develop, promote and scale your business in your market. 

(I already developed a business, “Earth Fashionist“ based on this. Checkout how via this link) 

2. Technology 

If you have better technology (algorithms, patents etc.), then you’ve a better advantage as the 1st mover in the market to become the leader. 

3. Creativity and Experience 

If you’re creative and experienced enough to pivot the idea into different sides, sectors to find what works the best, then you have a higher advantage as the 1st mover. 

4. Budgets 

If you’ve a big budget to;

• Spend on creating awareness in the market,

• Pivot the idea to other solutions until you find something that works and 

• Able to wait until early adopters/ customers join you, 

then grab the 1st mover advantage. 

If you need to know how to create demand for a need that doesn’t exist, checkout my FREE article. 

Did you learn from this blog? 

Share this with friends and on social media to help others too!

Try my “Proven Guide” to “Find & Monetise Your Passion in 2024” for FREE!

See you next week! 👋