Summer has taken its toll on our writing efforts. It doesn’t help that we’ve been busy working on some rather time-consuming projects. For one, the main contributor, Mikk Maal published an e-book about security tokens (can be found here), and secondly, we’ve been developing the prospectusapp.com, a web application for SMEs looking to raise capital.
In this blog post, we’re going to talk about a case study of our business advisory client. The lessons here probably do not apply to all businesses, but the struggle of going from zero to one is familiar to almost any business. Due to confidentiality reasons, I won’t be using the real name of the client, instead, I will call it Company X. Company X is a one-man company, with John as its sole shareholder and manager.
Company X is doing cybersecurity consulting, or at least that’s the main activity of the company. While the cybersecurity side of the business is working well and bringing in the money, John has more plans and ambitions. He has developed a software solution which can be applied in multiple industries. The solution is not the end product, but rather an engine, and on top of that engine, you can build the products for end-consumers. Or you can license the engine to other companies who can use it to build their products or improve their existing products for the end-users. I don’t want to go into more details about the product itself, but I hope you get the picture.
The problem the Company X had is that the engine enables to build many products – too many. There are tens of different products you can build in several industries – we counted about 15 different industries together with John. This sort of situation can create the decision paralysis, where you don’t know in which direction to go. This kind of decision paralysis can happen to starting entrepreneurs as well – there are so many possibilities to do different things, but how to decide? Here are some of the things we did and the approach we took with John to get some clarity on how to proceed.
- We listed out all the potential industries where the solution could be applied. Bear in mind that there’s no end-product at this stage.
- We analysed the industries from the perspective of a) potential products that can be built in the industry using the solution b) market characteristics per product/service category c) does the entrepreneur behind the Company X wants to be in that industry and does he have any passion for it.
It makes sense to break down what we analysed under the market characteristics. It’s not a comprehensive list, but some of the main things we looked at, in no particular order:
Mikk from Comistar
Comistar provides business, legal and tax support for e-residency companies. Our core focus is on Fintech licensing, e-commerce companies, blockchain industry and affiliate marketers. We’ve been operating for over 5 years and have helped more than 300 companies to get started in Estonia.