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So, You Want to Start Your Own
Business? My Congratulations and Deepest Sympathy
by: Suzanne Freiberg
So, you have just come up with the best
one-of-a kind idea since sliced bread and want to launch your own
business. Congratulations, you are on the road to the American dream
of becoming an entrepreneur! Now let me extend my deepest sympathies
for the pain you will experience as you try to get your business
started.
Hey, don’t stone the messenger; I’m not the
only Negative Nelly on this topic! The facts are, as stated by the
Small Business Administration, 80% of small business start ups close
within the first five years. But, maybe you and your idea are
different and you are prepared to beat the odds. If you still want
to give it that ol’ college try read on. (My apologies to those of
you whom I have completely devastated. However, keep in mind that if
you are still reading and I haven’t scared you off yet…you could
have what it takes to start your own business.)
Have you ever wondered why we are in awe of the
Bill Gates and Martha Stewart’s of the world? Have you ever wondered
why they are one-of-a-kind kinda’ guys/gals and are so well known?
Well, I think it has something to do with the blood and guts they
had to donate to start and be successful in their own businesses.
Anyone can start their own business, but only 20% of those starters
are still in business after five years and even fewer are actually
running a successful business; that means making money. So, this
journey definitely takes more than what 80% of us have. Are you
still reading? Ok, you may have what it takes.
What it takes to launch your business (we’ll
leave the part about actually being successful to another article)
is what I refer to as the “Eight Steps to A Successful Start”:
1. Determine Your Niche,
2. Identify Your Ideal Client,
3. Develop Your Unique Value Proposition,
4. Create Your Brand,
5. Prepare a Business Plan,
6. Prepare a Marketing Plan,
7. Develop a Sales Strategy, and
8. Accept failure, learn from it and re-group
Please note that the first eight steps have
nothing to do with what you actually want to “do” in your business.
In other words, if your dream is to be a career coach, you won’t
actually be coaching clients until you have been a marketer, sales
person, financial expert, and strategist. Oh, and for those brave
Internet entrepreneurs you will also have to become an Internet
guru. Note: if you know what mega-tags are, congratulations you are
well on your way! Back to my point, what is important to keep in
mind is that for most business launches it takes a full two years
before you are “doing” whatever it is your business is all about and
before you are ever the business owner of your dreams. Still
reading? You are already beating the odds!
Let’s take a look at Step One, “Determine Your
Niche.” Your niche is determined by defining exactly what group of
consumers will be your customers. This group will consist of people
who have specialized interests and needs, and have a strong desire
for your service or product. An example of a strong need would be an
attorney who needs a well organized back office system to keep track
of past and current case loads. The group in this case is
“attorneys” and the specialized interest/need is all about
well-organized back office systems. So, if your product is a
well-organized back office system for attorneys, this guy/gal is in
your niche.
Once you have identified a group with
specialized interests and needs, now known as “your niche”, you have
to ask and come up with answers to the following questions:
Will this group spend money for my
product/service? And, do they have the money to spend? A good way to
tell is if they have spent money for similar products/services in
the past. For instance, “moms” might be a great target market for a
new type of stroller, especially since they have spent money on
similar products. However, not all new moms have money to spend on a
new stroller. You would then want to specifically target moms who
have more disposable income – i.e. extra cash for your one of a kind
stroller!
Can I easily find and then reach this group of
people? Physicians are easier to locate than moms. Why? Well, one
reason is because physicians are listed as a group in the yellow
pages. So, if your have a product/service that targets a
professional group such as physicians you will have an easier time
reaching your niche. Whereas, if you are targeting moms it might be
harder to find that group, since they don’t yet have their own
heading in the yellow pages!
Is this group large enough that I can make
money selling to them? If your product/service is eye patches for
one-eyed pirates, you may need to expand your group. However if you
are selling a new bra to women who have had breast enhancement
surgery you might have a hit!
Is this group small enough that my competition
would overlook it? Yes, your competition might have over-looked the
one-eyed pirate market, but that is because this group is too small.
However, if your product/service is directed towards a specific need
that a specific group has, i.e. women who have had breast
enhancement, you might just have the perfect small market.
To find out how a coach can help you, contact
SmartWork Career Coaching @ 805.376.1906 or e-mail @
sfreiberg@verizon.net. One of our Career or Executive Coaches will
be happy to discuss your coaching options.
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