Category Archives: Business Plan

Early stage business start up considerations

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Starting a Business? Consider Your Customers and Competition

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Once you’re clear on the difference between an intriguing idea and what may be a genuine business opportunity and you’ve chosen what product or service you will offer,  it is then time to carefully consider who your customers will be.

The entrepreneur must define the customer well,  by using demographic and psychographic (lifestyle) data. The more specific the customer profile that is created, the better the ability to deliver what the target customer wants and will pay you to obtain.

When an entrepreneur fully understands who the customers are,  then he/she can understand what compels them to buy,  how to sell to them (on line or bricks and mortar?),  how to market to them,  how to price the product and how much time and money it will take to win those customers over.

This is why it is always preferable to enter a business in which you have experience.  The best way to know customers is by talking and interacting with them.  That allows you to tailor your services to meet their perceived needs and expectations.

If you’ve already done business with your target customers,  you will have a significant advantage and are better positioned to create a profitable venture.

Be sure to flesh out your customer info by speaking with others who do business with your target customers.  Suppliers and Freelance vendors  can provide lots of useful info. Speaking with your competitors will likewise be very helpful.

Visiting conferences and trade shows that are frequented by your target customers is a smart move,  as those are forums where information is shared.  Competitors may be more forthcoming in these settings.

Analyzing the competition will be a key success  factor for the business.  This is how you’ll find out what customers want from businesses similar to your own,  what benefits they think they’re getting and what price they’ll pay to have what they want.

A thorough competitive analysis allows the entrepreneur to refine the market niche and identify additional competitive advantages.  Good competitive info sets the stage for your marketing and sales strategies.

Visit the stores,  the restaurants and the websites of your direct competitors.  Check out where and how they advertise.  Study their message and methods of interacting with target customers.  Are your competitors making money? How do they make that happen?

Make sure that you have a critical mass of advantages that will improve your chance of success,  be it a hot product,  strong relationships with target customers,  experience in the business,  influential friends or a healthy budget to spend on start up costs.

You probably don’t  hold all of the cards, but before you take the leap  make sure you have enough to give yourself a good chance of winning the game.

More later,
Kim

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Starting A Business? Consider This

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Like millions of people around the world, over the past few months you’ve given some thought to ensuring your economic survival.  How to make money is at the top of the list for many and we’re all exploring our options.  A yard sale or two can help in the short run, but most of us need a steady and healthy income stream.

Polishing up your resume might no longer be a viable option, given that employment statistics have been dismal for several consecutive quarters and the global economy continues to shed jobs.  What little employment exists tends to be at at the bottom of the pay scale.

This cruel reality has lead some of us to decide  what the heck, I’ll go out on my own.  I’ll start a business or become a Freelancer and do some consulting.  That’s why I went out on my own.  Employers did not give a damn about transferable skills, work ethic, strategic thinking or anything else.

All they knew was that I was  too expensive to hire (or keep) and so they didn’t.  To have a roof over my head and food on the table I had no choice but to become a Freelancer. Thank God  I had a few desirable  skills that I eventually learned how to package and market!

This blog is all about sharing knowledge and experience as a way to help readers become more successful Freelancers, business owners and even employees.  My objective is to help you avoid time-wasting mistakes and obstacles and get you into your definition of success,  faster.

First of all,  becoming an entrepreneur requires  objective thinking and creativity.  You’ll need to take a cold hard look at your skill set and figure out what you can possibly do.  Next, you need to analyze the marketplace.  Who will pay for the product or service that you’re able to offer? Does it appear that you can eventually persuade enough clients to pay you enough money to live on?
Also, what relationships can you rely on to help ease your way into the business—refer clients, provide expert advice, hook you up with good deals on equipment or a space to set up shop?

Oh, and BTW, can you afford the start-up costs? Every business requires up front money to get rolling, so the financial requirements of the business you choose need significant consideration.  Banks are making very few loans these days and those who do get funded have near perfect credit.

On the upside, going out on your own during a difficult economic cycle can be a smart  move.  The economy will force you to distinguish between the magical thinking of an intriguing idea and a real business opportunity. You’ll be in the planning and learning stages while the economy lags.  When the inevitable upswing comes around, you’ll be prepared to take advantage and make some money.

Over the next few weeks, I’ll help you take a look at a few basic things you’ll need to consider before you take the leap.

Much more later,
Kim