So you’ve started your dream business… Congratulations! All that hard work has brought you to this moment. Your excitement has never been greater.
But hold on a moment! Do you have all the right pieces in place? Did you do enough preparation?
Being Modest (Don’t be!). Having a rational level of confidence in your business is essential in growing your market. Confidence, and an honest belief in your product or service goes a long way in convincing a consumer of its merits. If you don’t believe in your product, it will show, and no one else will.
Here are a few things many businesses fail to implement during startup:
Answering the Question “Why should I buy it?”
Perhaps one of the most simple - and painful - questions every business owner should have an answer to is “Why do I need this product?” Most of us don’t like being told negative things about ourselves, especially when it’s something we believe in. But if you don’t ask yourself this question, you may be wasting your time! But it doesn’t stop there… ask those around you - your family, your friends, even total strangers. If NO ONE has an interest in your offering, you may be barking up the wrong tree. Maybe a simple adjustment is all you need to move forward, or maybe the product is a dud. Either way, you’ll never know if you don’t ask.
Inadequate accounting system in place
Many people get so excited just to get to the starting line for their business, that they omit a crucial aspect - having an efficient way to track your revenues and expenditures. There are tried and true methods for measuring how your business is doing; a simple income statement, balance sheet and cash flow statement gives you all the necessary information to not only see how your business is doing, but where it may be trending. Critical information, such as knowing your profit margins per unit, help you to know whether it is worth keeping a particular product or service, or whether you should consider another option. Not having a financial ‘picture’ of your business is about as wise as flying an airplane blindfolded.
Failing to clearly define your target market
Investopedia defines a Target Market as “a group of people that have been identified as the most likely potential customers for a product because of their shared haracteristics, such as age, income, and lifestyle.” Understanding key aspects of your target market helps you to better understand what features and benefits may appeal more to a particular consumer than others.
Listening to your customers
You may be so excited in the belief that your product or service is a slam dunk, but always be willing to listen to what your clients tell you. Ensure that you give space for feedback before, during and after a customer consumes your product. What do they like? What could be improved? What else in the marketplace provides a similar level of satisfaction? Be prepared to make adjustments as you stay ‘dialed in’ to your customer base. This strategy ensures you keep your product relevant.
Have a plan and be willing to change
You don’t need perfection - but you need a plan. Developing a strategy for your business allows you to anticipate pitfalls before they happen, and the implications that may follow. Make sure you share your business strategy with other objective observers. Allow them to criticize the plan and give you honest feedback. And after a set time period, review what you’ve written down, and make the necessary adjustments. Learning from mistakes will be the most important part of your business’s survival.
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