How to Start a Great (IT, mobile) Service

Recently my friend told me a great story about two of his friends who decided to start a new service business. The friend critiqued them so much that they ended up offering him a job in the project. Although he didn’t accept the generous offer (Why is it so that when we are nasty we are remembered? Revenge? A sign of knowledge?), he thought of the story much because it offers some interesting insights about… mobile technology.

Insight #1. You have to clearly understand what your new service will accomplish. Why do you need it, what’s new about it? Is it just a new old? Or is it more?

Interestingly, you don’t have to go to some unknown heights. You can go the Apple’s route that is by substantially improving user experience.

On the mobile marketing front – this insight is also relevant. Before getting high on the thought of trying mobile marketing, ask yourself if you know what the heck it all means. Do you know that even within one country it will take a great organizational effort or a sweet sum of dough to be paid to a monopoly aggregator for access to all users? Do you need all users? Do you know that in majority of European countries SMSes are limited by 70 symbols?

Insight #2. You can’t make users change the way they live. Your product will not make it unless it is something new and easy like iPhone (but it has not hit mainstream yet, so we are talking about early – tech savvy – adopters). The guys my friend talked about wanted their users to start a new life. Nope, they will just pass on your offer.

Insight #3. Although current stories tell us that you have to gather users first and introduce the business model later, it is always a good idea to talk about where the money is. Mind using the word “advertising” in this respect. (That’s what the boys said, “Of course, we will earn megabucks by selling ads.”) There is way too much competition for ad money and eyeballs of the end buyers (who the advertisers want to influence).

Thus you have to be talking business to advertisers like Google does: “I promise XXX people will come to your site.” “I promise with your budget you will get as much given the popularity of your offer.” Can you match that? Why do we have to pay for something new? Moreover, if it is just a space for ads, even with a quality audience, will they click through on the ads or will simply ignore them? Many social networks with all their great personalization are still trying to find a way to induce ad spend.

Insight #4. Risks. Did you think about initial investment? It means time. It means money. It means unexpected… something. Risks should be taking into account when you think of your venture because contingency planning is a way to minimize your future damages.

In this respect: is your service easy to copy (as a rule it is)? China is notoriously known for cheap imitation – is your genius protected? If not, other will say “thanks” but, as Russians say, you cannot put a “thanks” into your empty stomach.

Morale? It is really simple, stupid:

1) Why is it new?
2) Say it in one word.
3) Where is the money?
4) What if it does not work, how to test it? How to protect yourself against imitation?