Internet is emerging as a powerful medium for transforming your small business into productive and profitable one. Use of internet can eliminate or curtail the mailing expenses of your small business to a considerable extent. In addition to that, effective utilization of the communication tools of internet can help you to engage in continuous dialogue with your existing and new clients. It also provides you with the option of sending special announcements and deals to the customers much conveniently. It is due to this internet that you can focus on other areas of your business.
Starting a new business can be an arduous task. You need to give it a proper thought and come up with a plan that covers all the risks. Consulting with experienced professionals and utilizing the business development resources is the crux of the matter. Even if you have some past experience and think about starting a business in a different niche, you must make sure that you have the idea of all the risks that might come up in future. Plan out your financials and focus on your target markets to beat your competitors.
You just cannot take risks for the sake of taking it. If you have given a proper thought to the venture and seen some light at the end of the road then you must go ahead and take the risk. It’s just like putting a sports bet after analysing the performance of the teams that play against each other. Today most of the people consult expert professionals before putting up their bets to earn a better income. If you are somewhat interested in knowing more about this then you can click here for more information.
Market situation always tends to change and it never remains the same. You must constantly analyse the market condition and make sure that you are well aware about the wants of the prospective clients. The threat of new entrants and monopolistic techniques of experienced players can affect your business. If you have a team and you are not an individual then you must make sure that everyone shares responsibility equally and there is no compromise on the quality of service. Different people in the team might have different ideas and you must make sure that you listen to everyone and create a balance in your team.
Everyone in the team must have the same goal and they must get rid of their personal goals if they want the organization to succeed. It can be difficult to manage people in your organization, but man management is what makes a small organization big in the long term. Even though your organization might be small at the start but don’t forget to dream big and make sure that you have a set rules for everyone in the organization. Though you can be a bit flexible but this does not mean that people compromise with the rules and let it affect the organizational goals.
Today, let’s talk about the science of marketing – how to get people to come to your new business.
News flash – you CANNOT.
Marketing is simple. It’s about telling people what they want, when they want it. Next rule of marketing, you cannot convince anybody to use your product if the product is crap in the first place – which is why MLM companies have to resort to MLM business models because nobody in the right mind would pay so much money for whatever it is they are trying to pedal. Honestly.
Let’s be clear about a few things first. Marketing should NOT be the focus of your brand new business. Developing a proper idea, making sure that people will do what you want and consistently speaking to customers is the best way to go. That is the only way you will create value for other people.
When you create value for other people, you don’t NEED to market all that hard. People will come to you automatically.
That’s all I have to say on this manner.
Welcome back! Today I’d like to talk about something very important – testing the hypothesis that comes with your business.
Why is this so important? Well, because there are plenty of repercussions to getting this wrong! Seriously. For example, if you wanted to start a new Argentinian restaurant (all the examples I’ll be using here are food based to keep things general) you’d need to know without any doubt that people in your community actually WANT Argentinian food.
You need to be able to separate your own biases and personal experiences from cold, hard data. It is easy to get clouded by judgement on your own behalf, and it is even easier to get useless feedback from your friends and family. This happens all the time though – most of the time your friends and family are quick to tell you all the good stuff about your idea, only because they are afraid of hurting your feelings. This is a large part of our culture, and it’s unacceptable when you want good feedback.
In order to develop and test your hypothesis and market demand, you need to actively seek out negative and constructive feedback. Positive feedback is useless, because it does not help you achieve anything at all. I’d much rather hear about why you think my business model won’t work, because that is more useful to me than someone blindly telling me to ‘follow your dreams’. Bullshit.
Go out there and actually talk to customers. Figure out what they actually like, and don’t like. Most of all, do NOT take lip service seriously. Most people lie, whether they mean to or not. What someone says they will do isn’t necessary behaviour they will follow up on later.
To ACTUALLY test a hypothesis, it is much better to observe behaviour. That is the kind of stuff that will actually help you develop a correct intuition of your business. For example, instead of opening a full blown restaurant, maybe try a small snack stand, or give out samples of your food to get feedback first, before dropping hundreds of thousands on renovation work for a restaurant that potentially nobody might visit.
Hi there! Welcome to our brand new blog where we provide up to date, real time business advice to our fans. We like helping small businesses thrive, and do whatever we can to provide as much assistance as possible to them.
First of all, let’s talk about business plans. You don’t have to write one down and go through an unnecessary waste of time trying to formularize everything (unless you are looking to raise money from an investor, then it is most certainly something you have to work on) but it 100% helps if you have any sort of a plan. This is absolutely true not matter what you do, however, let consider some of the elements writing a business plan might entail:
Firstly, you need to talk about what the business actually does. Are you selling cars, or developing a prototype of a new device? These things are very different and need different attention to get them going the right way. Be specific.
Next you need to talk about the market demand for your product. Having a good idea does not necessarily mean people would want it. Seriously. Also, just because something hasn’t existed yet in your town does not mean it is a good idea to start one. There isn’t an underwater basket weaving class in the place where I live, but that does not mean I should start one. Similarly, just because you have some sort of experience with a unique skill set (say, making Mexican Fish and Chips) it does not mean people actually want to eat fish and chips cooked with salsa.
Before doing any sort of business, it is extremely important to make sure you get the necessary market research down! Without doing so you are going to be exposing yourself to all sorts of risks in the future. Be absolutely sure that there is a demand for whatever it is you are looking to build or start first, before diving head first into it. I am sure you have heard horror stories of people starting their businesses, sinking thousands of dollars into getting a restaurant only to shut down a few months later tail between their legs. This is almost ALWAYS because of a lack of demand.
Next step, your business plan needs the numbers. I won’t go into detail here, but you need to outline how to make money, and how much money you are going to make. Simple estimates do NOT cut it. Actually go out there and do the calculations yourself.
In the next post, we’ll continue this discussion where I’ll talk about testing assumptions and developing hypothesis!