10. Structured Experimentation
When you start a business, you should have some idea of what will work and what doesn’t.
If you don’t – **** BIG TIP **** – look at your competition and see how their business model works.
But understanding how others are making money only goes so far.
You need to know what opportunities they are missing out on. What did they miss?
How can you tell what existing companies have missed?
This is where structured experimentation comes in.
By testing out ideas in your industry, you can uncover new ground that others have not spotted.
Sure the first idea might be a failure and cost you a small amount of money.
Perhaps even the second one will.
But after 10, 20, or even 100 tests, you will have enough data to uncover a diamond in the rough. Something your competitors would never have spotted and will almost certainly give you an edge over them.
For example, buy your competitor’s products and note the delivery times, packaging, and condition of the product.
Any holes in customer service can be exploited by you by giving the customer a better experience.
This is how Jeff Bezos made his money.