If you’re embarking on the journey through the vibrant African tech startup sphere, Tomi Davies’ “Investment Worthy Startup” is your ultimate guide. This book isn’t just a roadmap; it’s a treasure chest of insights that deciphers the unique challenges faced by African startups and offers a strategic blueprint for conquering them.
During our last review, we briefly talked about the POEM Framework –a powerful tool for measuring a startup’s progress objectively. The five elements of the framework – Vision, Proposition, Organisation, Economics, and Milestones – help founders and investors alike understand the startup’s journey and its potential for success.
Today, we will be reviewing ‘P’ in the POEM Framework, the Proposition – the core idea your startup brings to the table. While it’s natural to focus on your product, Mr. Davies urges you to first comprehend the broader context of your business proposition. To achieve this, he advises delving into the market landscape, industry trends, and potential competitors.
By analyzing market segments, customer profiles, and competitive dynamics, founders can carve out a unique niche and set their startup on a course for differentiation and success.
Key Takeaways from Proposition:
- Context is King: A profound grasp of the market context precedes product/service elaboration.
- Market Dynamics: Know the ins and outs of the market, including trends and potential disruptions.
- Customer-Centricity: Center your product/service around solving specific customer problems and needs.
- Competitive Edge: Develop strategies to distinguish your startup from competitors and fortify your market position.
Let’s move on to the crucial concepts of SAM (Serviceable Available Market) and SOM (Serviceable Obtainable Market). SAM represents the slice of the market you can target, given factors like geography, demographics, and psychographics. On the other hand, SOM indicates the share of that market you expect to capture based on your go-to-market strategy and competitive landscape.
Key Takeaways from SAM and SOM:
- Precision Matters: Define your market size with precision by considering relevant factors.
- Realistic Goals: SOM guides short-term growth targets and strategic planning.
- Market Share Dynamics: Determine your expected market share based on industry insights and competitive positioning.
The Proposition chapter equips you with the tools to build a solid foundation for your startup. The concepts of SAM and SOM add depth to your understanding of market dynamics and growth potential.
Stay tuned as we unveil the next layers of wisdom with the ‘O’ in the POEM Framework. Don’t miss out – seize your copy today and chart your course toward startup success!
