Tesla Motors CEO Elon Musk says, “Great Companies Are Built on Great Products.”
I believe significant companies are not built on products; they’re built on their Premise, or the marketplace behavior the company is serving. Behavior translates into purchases. If there are no purchases, there’s no need for the company to exist.
Two years ago, a new restaurant opened down the road from my house. It touted the best Middle Eastern Cuisine, and I’m sure the food was incredible. The empty parking lot indicated the problem; customers in this market want casual American cuisine.
After six months in business, and few customers, the restaurant owners figured that out. In desperation, they promoted their ‘fish and chips’ special, which did not fit with the restaurant’s cuisine and therefore didn’t work.
A few months later, the restaurant closed.
Now, a new sports bar has opened, serving American casual food. The parking lot is full almost every night.
So, your business success is built on offering products fulfilling the Premise – not great products themselves.