Sink or swim
Feb 17 2010
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You wouldn't jump into the deep end of a pool without being able to swim, but many would-be entrepreneurs take the plunge before having a clear business idea. Allison Price from Motivating Mums gives her advice on how to avoid sinking without a trace.
Standing out
The first thing you will need to do is identify your unique selling point (USP). This is the aspect of your business that makes it different or more appealing than your competitors. Perhaps it's the only product or service available, or maybe it's better than your rivals. Ask yourself: is my product cheaper than my competitors; how will my service differ; and what level of after-sales support can I offer? Once you've worked out your USP, you'll be able to identify your target market.
Know your audience
A great product or service means little if there's no demand. Persuading consumers to part with their hard-earned cash is tough at the best of times, so do your homework.
Hit the streets and speak to potential customers, suppliers and, if appropriate, distributors. You may feel tentative about conducting your own research but you'll find that most of the people you approach will be happy to help. Important questions to ask potential customers include why they choose certain products over others, and how often they buy them. Ask them what prices they are comfortable with and what level of service they expect. Have a clear idea of potential customer profiles, such as their age range and income bracket.
Scope out the competition
Start by searching the internet for competitors. If your business produces a physical product, visit competitors’ outlets to check prices and styles and keep a note of their USPs. Knowing and understanding how competitors work is essential as these are the people you’ll be fighting against for market share.
These are the basic requirements before dipping your toe in the entrepreneurial waters, and should help you stay afloat once you launch.
Comment by Adrian Swinscoe
Thursday 18th February 2010Hi, Great article. I agree that many successful entrepreneurs jump into the deep end with only a vague or partially finished idea of what they want to achieve. It's a bit like looking out into the distance through a frosted window. However, what they do do well is remain flexible and are always learning about what works and what doesn't. I wrote something about that here: http://bit.ly/9eC2Xq and would appreciate any comments or thoughts. Best wishes, Adrian www.adrianswinscoe.com
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