My previous business attempt turned out to not be a terrific idea. I’m abandoning it to pursue a different method of starting a business.
The Dane Maxwell Method
Dane’s method is taught through his program called “The Foundation.” It creates a direct focus on sales before products. You don’t start with a product in mind. You ask the customer what they need and build that. Here is the basic gist.
1) Choose a market. For example, real estate companies.
2) “Extract” an idea. Call/email everybody who will talk to you in that market. Learn the problems that are hurting the customer’s business.
3) Presell the software. Collect enough money to build the software solution.
4) Hire professional developers and create the software.
The benefit of this method is that you already have your customers lined up when you decide to build the software. He also advocates for software as a service (SaaS) meaning the customer would pay a monthly fee, which provides you with recurring monthly income.
Does It Actually Work?
Dane has a lot of success stories. However, according to some students that have gone through the program, most people fail because finding a suitable idea is hard even under the direction of those that have done it before. In spite of not producing a good business idea, they report learning tons from interacting with potential customers. I want that learning.
Based on my last failure, I want to refocus on solving problems. The problem I was trying to solve with my last business simply wasn’t that big of a problem. Nobody really cared and eventually I didn’t really care.
This time, I’m going to be looking for a juicy, fist-clenching problem. When I propose a solution, I want customers calling me and telling me they want it sooner than planned.
Solve a real problem. Find real success.