Entrepreneurs spend most of their time and money developing great new products. Very few entrepreneurs, however, realise that a great product is only the beginning.
Without a great market category, most new products will fail.
Very few entrepreneurs know how to develop a great market category, and reach what is called Product-Category Fit (‘PCF’).
A business with PCF will not easily fail, while a business without PCF, will not easily succeed.
Every innovative startup must therefore strive to reach PCF.
It is priority no 1.
Entrepreneurs are solving problems for customers / markets, but not all the problems they solve, will naturally lead to the creation of a new market category.
To create a new market category, the entrepreneur needs to solve a very unique type of problem for the market.
This type of problem tends to be hidden from the rest, and cannot easily be discovered through normal problem or needs analyses.
TMARA has developed a methodology to identify these unique problems, that by default, lead to a new market category.
This special problem definition, also provides the guiding principles, for creating an emerging new market category king.
This insight has turned out to be a major breakthrough, that sets us apart from the rest. After four years of development and testing, TMARA is in a position today, to systematically find, found (co-create) and fund Emerging Kings.
The virtual factory-like Market Category Generator (‘MCG‘) brings the entrepreneur and the market-category fit expert together, through a process consisting of four main tests, developed to FORGE Product-Category Fit (PCF).
Each test assists the innovative startup to achieve the necessary critical components of the business, in order to reach PCF. In other words, each startup is under pressure to pass each test (in logical sequence), to stay in the race (in the MCG) towards PCF.
Failing to pass any test in the sequence, dramatically reduces the chance of success, and normally results in a managed exit (from the MCG).
An expert assists each start-up to prepare themselves for each test, which sets the minimum required specification to become an Emerging King.
NEW BUSINESS MODEL:
Without the MCG, the start-up world is at best, a gamble.
The MCG creates investment optionality through the PCF tests.
In other words, each test provides critical information on the journey towards PCF,for which investment options are secured on the winners, the Emerging Kings.
This assists the MCG investment consortium to delay investing (at Series A), in exchange for an option during the test stage, until the start-up has achieved PCF.
Stated differently, the MCG pays the costs involved during the testing phase, in exchange for an equity option, which may be exercised at a fair discount, once an Emerging King reaches PCF.
THE EMERGING KING:
An analogy – Elvis Presley did not seek to disrupt Jazz (an existing market category). He created a new music genre, within which he emerged as that new category’s king, and dominated it (including commercially) for decades.
The Market Category Generator (‘MCG’) turns innovative startups into Emerging New Market Category Kings, by default.