The law of limited resources

It’s easy to be enamored with your own ideas. Or fall head over heels in love with your new product.

Or your new product extension. Or a new app feature.

But, having limited resources is a fundamental law in value creation. Choosing your offer means customers give up choosing something else. What will your customer need to give up to get your solution? And, what are their attitudes and beliefs about giving it up?

You also might want to know that people are funny about losses. They would rather choose to avoid a loss than secure a gain. If given a choice between two chances to avoid a loss or secure a gain of the same probability and value, people will generally choose to avoid the loss instead.

Having a great product or service isn’t enough to create value. You need to know whether customers will readily give up what is necessary to get what you offer.

So instead of being so enamored with your own creation, test whether your consumers will give up what is necessary to gain your creation. Until this happens, value isn’t created.