The tale of the fisherman who wanted to be the best fisherman in the world.
Once there was a fisherman whom after having not so a successful career as a fisherman decided he wanted to become the best. So, he started to study his prey, the fish. He started to learn about what they ate, when they ate it and why they ate it. He discovered where they live, why they live there and what makes them move. He studied the effect of the tide on the fish; what they do during a high tide and what they do during a low tide. He experimented with the differences between night time fish behavior and day time behavior. He studied the effect the ocean had on the weather and consequently the fish. In essence the fisherman became the fish. He discovered a new world where he grew fins and scales and moved with the ocean, fed from it, slept in it and grew in it.
Meanwhile, the other fishermen were busy buying the best fishing rods, the best bait, the fastest boats, nice fishing hats even nicer fishing jackets; all the best things and tools they could buy for themselves. They read books on types of fish and how to catch them. But in all these they never once went out and lived with the fish to really get a good understanding of them.
Come fishing season and guess who caught the most fish. The fisherman who spent time with the fish and got to understand them really well was raking in fish after fish effortlessly. He would anchor his boat at a point and continuously clean the area off fish. The other fishermen just looked on in awe not understanding what was happening, they had the best fishing gear, the best fishing jackets, the best fishing hats but no fish to speak off.
Because the fisherman had studied the fish to the point where he became the fish, he just studied the current, the weather condition, the direction of the wind and chose a point where he was sure the fish were feeding and drop anchor. Because of his intimacy with his fish and their problems, he had eliminated all the guesswork and replaced it with certainty.
What is the moral of this story in business?
Just like the fisherman, the business man must stop thinking like a business man and start thinking like a customer. What do they want? When do they want it? Why wouldn’t they want it? What are their alternatives? What are the weaknesses to what they are already getting? How can you align your product to their expectations?
What this fisherman realized is that all other fishermen were too focused on themselves and gave very little concern to the fish. This is the major problem that plagues most businesses. The owner is too busy focusing on what he needs to take from the business and not the list bit focused on the customers need to take from the business in exchange for their money.
The main purpose of business is not to make as much cash for yourself or build an empire for your family no!
The main purpose of business is to generate massive value to your clients, who will then fall in love with your product or service and shower you with enough profits to then earn as much cash for yourself and hopefully build a large empire for your family.
This explanation puts the customer first then you second.
At first you may react by saying “But I do all the hard work, shouldn’t I be the main beneficiary?” YES
You are the main beneficiary – as the business owner or entrepreneur – of the Rewards of a good Job. But the job is not about you, it’s about the customers.
So to be successful in business, you must come to the same realization as the fisherman that you have to think like the fish or like you customer.
So how does one think like a customer?
- Who is my customer?
This is the least answered question by most entrepreneurs especially at the onset of their business. You must have an almost perfect definition of your customer.
- What problem does my customer have?
These are not the problems you think they have. They have to be the actual problems that they face and the only way to know what they are is to ask.
- Do I have a solution for this problem?
This seems obvious but you’d be amazed at how many people get it wrong. A good question is, does your product cure the actual problem or a symptom. There is money and business in solving both. The trick is to understand your specific customer. Customers at the top of the pyramid can afford a complete solution but those at the bottom of the pyramid are ok with pushing the problem on.
- Is the problem seasonal?
If it is, your solution must be ready just before the season peaks. It is silly to deliver a product to the consumer just after they don’t really need it.
- What are they already using as a solution?
This is the best evidence of demand. If you come across a problem that no one else has already provided a solution to, don’t be so quick to celebrate. Be very sure you are not the mad man before you go all in.
- Are they willing to pay for my solution?
After all, why bother? At the very least, someone must be willing to compensate you for what you have put in. And since most of you reading this are not charity based, a solution that everybody wants but nobody will pay for is not a business.
- Where do my customers hang out?
After you are sure you have a good deal for your customer, you must populate your message to areas where those who would buy it, reside. If you want to sell to penguins, get ready to go south. Of course you can always use the internet, but this assumes there is a computer in front of your customer.
- What other activities do my customers like?
Look for complementary products and place your product where they are. If you are selling fried chicken, try and bring in chips and sodas.
Equity bank is currently the largest bank in Kenya by deposits.
The main reason why equity bank grew as fast as it did, is because they did not just open banks and wait for anyone to walk in, the actively approached and courted the mwanainchi (Ordinary Kenyan) by offering them services that work for them. They addressed cost and convenience.
Opening a bank account went from a minimum balance of as low as sh1,000 to sh0
The people who had bank accounts would not have cared about a zero balance but all those people who did not have a bank account because they felt it was prohibitive, were very excited.
Results: Equity has won hundreds of awards and it grew to be one of the largest banks in Kenya.
Why didn’t the other banks do the same? They never really bothered to think like an ordinary banking customer who forms the bulk of the market.
While Equity bank was insolvent in 1993 – then equity group holdings – it is now considering buying some of Barclay’s assets.