The best, and least expensive, time to give your business direction is before you start it. The next best time is right now. These tips and resources are just what you need to get started in planning your own business.
Joe’s company runs specials in the local newspaper because that’s what his competition does. He pulls these ads when he’s sick of them (even though his prospects won’t notice the ads the first 9 times they see them.)
Joe then hires a P.R. firm to create a unique image for his company, but he doesn’t renew the contract with the P.R. firm because the campaign didn’t bring in enough new clients (even though that wasn’t the goal.)
Do you know someone like Joe? He’s a fairly typical small business owner – he doesn’t have a clear direction for the marketing and growth of his company, and he lacks the focus to maintain that direction over the life of the business.
The best, and least expensive, time to give your business direction is <strong >before you start it. The next best time is right now. The tips and resources below should help you take the next steps if you have an idea for starting up your own business, consulting firm, or private practice of any kind. If you’re already on your own, it’s not too late.
1. The Idea Phase2. Put Together an Advisory Team3. Do Your Market Research4. Define Your Target Market5. Basic Pricing Issues6. Planning for Future Success
1. The Idea PhaseA common myth among would-be entrepreneurs is that they need a ‘brilliant’ idea. Actually, most successful businesses are those that are focused on what I call a “good enough” idea, to borrow from D.W. Winnicott.
What’s your idea? Flesh it out a little. Find out who else is doing what you’re planning, and think about how you could improve on that. Don’t reinvent the wheel – tweak it.
Pay attention to whether your idea gets more interesting to you the more you spell it out and talk to people in your prospective field. Hopefully, you’ll find that your initial idea was really a starting point, not an ending point. The ideas that emerge as you gain expertise and momentum on your path, and which you couldn’t have thought of at the beginning, are the best ones.
Make sure your new business will allow you time for family, and to maintain your health and well-being. It’s a lot harder to fit in the important aspects of life once your days are packed with business-related appointments and concerns.
2. Put Together an Advisory TeamWe all need mentors, advisors, consultants or coaches of various kinds. If you consult with a lawyer, an accountant, and a business coach/consultant while you’re in the planning stages, you’ll prevent expensive, frustrating mistakes later on. These professionals can help you put real numbers in your business plan (as opposed to the hopeful projections I usually see,) they’ll introduce you to people who can help you get your business off the ground, and they’ll allow you to learn from other people’s mistakes.
Depending on your plans, there might be other professionals you need to include on your initial Advisory Team.
3. Do Your Market ResearchAfter the thrill of feeling like a pioneer wears off, you’ll be glad to know that others have hacked away the dense brush to clear a path for you. I was very disappointed to find out that other people were calling themselves Coaches after I ‘invented’ the term. But I realized that it’s not such a bad thing to get a look of recognition from people when I tell them about my work. I’m glad I don’t have to launch into a PowerPoint presentation whenever someone asks, “So, what do you do?”
Some great sources of market research information are:
4. Define Your Target MarketReview your market analysis and identify your target market. You’ll get to know this portion of the population very well, if you haven’t already. I recommend that clients write a description of an example (or three) of their target population as if they were beginning a novel and had to introduce the reader to an important character. What do they do? How old are they? What concerns keep them up at night? What do they value most? How do they approach shopping for products/services? Do they have young children? Elderly parents? Do they pinch pennies on themselves, but are extravagant spenders on their children and/or pets? You get the idea!
This is an ongoing relationship and you’ll continue to become an expert on your target market. If you don’t genuinely care about them and want to meet their needs, even anticipate them, you won’t be effective in the long-term, though.
Whatever you do, DON’T pick a market that forces you to compete on price.
Resource: My article “No Niche, No Scratch: A Niche Helps You Stand Out in Your Field and Attracts Others Who Want What You Have To Offer” might be helpful when it comes to pinpointing your niche in a crowded marketplace. Email me if you’d like to read it.
5. Basic Pricing IssuesYour market research will come in handy here. Generally, newcomers to a marketplace should start in the middle of the accepted pricing structure. Occasionally, new businesses are positioned at the high-end of a niche market. Most get there by developing a reputation over many years.
Remember that repeat business is much easier and more profitable to attract than new business. How can you incorporate that basic truism into your marketing plan, customer service policies, and other interactions with existing customers?
Almost as good as repeat business are enthusiastic referrals from happy customers. What can you do to encourage and deserve that kind of referral?
And it’s worth saying twice…don’t ever compete on price!
6. Planning for Future SuccessSchedule time in your workday to meet with advisors, staff, clients, and prospects. And schedule time off by yourself to focus on the big picture. If you have employees, you might meet for half an hour every week with them. You might take your advisors out to dinner every three to six months. You should talk to clients whenever you run into them…the same with prospects. If you don’t run into them, invite some of them for coffee every month. And take time off by yourself quarterly to reflect on whether you are doing something you believe in and enjoy doing. If your business has gotten away from you and you’re playing catch up most of the time, don’t feel too badly. That’s a very common entrepreneurial problem, but if you don’t address it, you’ll end up like too many of my clients…burned out and feeling trapped.
Other things to keep in mind when you’re planning:
Track new referral sources, repeat business, how much clients spend per visit/order, how you got the business you enjoy doing most, and anything else you can quantify. That’s the only way to make intelligent decisions until you’re established and have an intuitive grasp of these figures. Even then, tracking results can help you get more useful feedback from your Advisory Team, staff members, and others involved in your business decisions.
If planning takes away your enthusiasm for your new business, and you want to ride the wave of adrenaline and avoid putting your plans on paper, you’re not ready. At least not if you need to make a living from it.
Investigating and creating a solid foundation for your business should make you feel MORE enthusiastic, and stir up new and better ideas. If your business is going to last you’ll need to be both passionate AND persistent. It’s similar to getting pre-marital counseling. You shouldn’t avoid pre-marital counseling because you’re afraid you’ll discover unresolvable problems in the relationship. If the marriage is going to last, you’ll find that the more you know about each other, the better you feel about the prospect of spending your life with him or her.
A business is definitely a long-term commitment, and you’ll probably spend more time working than you do with your family or on hobbies. So make sure you know what you’re getting into before you take the leap.
Related Articles
resource guide for small businesses
by Team ZenBusiness, on December 02, 2024
Tips on How to Start Your Own Business
by Team ZenBusiness, on November 05, 2024
Tips for Starting and Succeeding in Your Own Business
by Team ZenBusiness, on December 05, 2024
Beginner’s Guide to Starting a Startup
Helpful Tips For Starting A Business Fresh Out Of College
by Team ZenBusiness, on November 04, 2024
Things to Know About Your Early Stage Startup or Small Business
by Team ZenBusiness, on November 13, 2024
Start Your LLC Today