Who is Phil Sokowicz, you may ask? Phil is the co-founder of a rising German legaltech startup that aims to help people get the most out of their insurance policies. Phil and his co-founder started the business in 2016 and they already have thousands of loyal customers.
So, what about their approach led to so much success? Here’s how you can create a successful startup just like Phil.
1. Find the target market
No business can succeed without customers. And customers only materialize when you sell something they actually need. A target market is a group of people that the business is aimed at helping.
Phil found a great target market because he noticed a gap in the legaltech market – a group of people who needed a product but didn’t know about it yet. He discovered that over 100 million people had concluded life insurance policies between 1994 and 2007 in Germany. Many of these contracts have faulty cancellation policies that could result in a huge payout. By creating a service that helped this particular group of people, he was able to guarantee a strong customer base.
2. It’s ok to start small
It all began as a tiny company. Don’t worry too much about your initial lack of resources. Start building your product from home and pitch it to potential clients and investors from there. As your profits begin to grow, you can expand to an office building and begin hiring long term employees.
3. Find a reliable co-founder
You don’t have to go it alone. Phil and his co-founder have been together since the very beginnings of the company. Having a reliable co-founder means that you can bounce ideas off each other and keep yourselves motivated when the going gets tough.
4. Know your own business
You will need to know your product and your business model inside and out. When potential customers ask you about a specific aspect of the service you offer, you need to have an excellent answer ready to go.
Phil and his co-founder did lots of research on the legal system and on the insurance policies they were tackling before creating their service. They even enlisted the help of external law firms to make sure their product could deliver legal results.
5. Keep it specific and simple
You don’t need to serve everyone, just your target market. The more specific your service, the better. Most people will be after a solution to one very particular problem. In this case, the solution they provide is to a specific type of insurance policy. Instead of trying to help everyone, Phil and his co-founder have made their service incredibly specific – they help people with life insurances that were signed between 1994 – 2007. They have done the opposite of stretching themselves too thin. Because the service is so specific, they can guarantee that the people who need it, will get excellent results.