How to identify a 'wrong' client
The company success depends not only on the product it offers, but also on the market strategy. Here you may often face
a ‘wrong client’, that is not intended to deal with your product properly. There are several criteria for identifying them.
Your client doesn’t seek to purchase your product
The first client is a reference you aim at further in order to scale your company. If you try persuading a customer to buy your product, you will not reach good sales and growth. Many IT startups make this mistake. They have to struggle with the mistrust and that’s why strive to find at least someone who would buy their product.
Probably your value offer is formulated improperly. You have to clearly convey why the customer needs your product, what value it has.
Client’s demand is not typical for the market
Making a product that solves a problem of few people is a waste of money and time. It means you haven’t analyzed the market sufficiently. Don’t waste your resources to satisfy unpopular needs.
Your client is a company from a small conservative segment
If a startup is wrong about the selected segment for product realization, it is limited by the number of players who don’t have a growth potential. An ideal segment meets 3 criteria: large-scale, growing, and profitable.
If your solution doesn’t suit different industries, focus on rapidly developing ones.
Your first potential client is a big cheese
Among the first customers there should be not only corporations, but also small clients. A large business is not willing to risk and blindly try an unknown product. It means that such a client is very likely to refuse.
Client is technically unable to use your product
An IT startup should be aware that not every client will easily deal with the product implementation. Such a client may purchase your product, but they won’t implement it without necessary skills.
Client doesn’t take you as a valuable partner
The client should be committed to a long-term cooperation. If they initially take a product as something temporary, such a client will not bring new buyers. If during the negotiations your potential client shows warning signs, don’t make deals with them.