Business start-up needs.
1) Problem solving vs Client need. It really comes down to does the business owner have the solution to a problem that their client has.? Is the owner aware enough to know when you need help?
The value of a good product idea is proportionate to the size of the problem it solves. When you can communicate the problem to investors/advisers, and they nod their heads in agreement signaling they understand, then you’ve got an interesting business idea.
When you can communicate a problem and back it up with a solution that consumers buy into, then you have a business.
2) Sales and marketing strategy. Although you may have the first issue licked, it means nothing without knowing how to bring a customer in the door.
How do you put yourself or your product in front of your prospective clients? Who is your ideal client? A few years ago I met with a fellow coach who has her market very well defined, she asked me that question so she could refer people if obviously they weren’t in her market. Your ideal client actually defines your niche. At the time it really caught me off guard cause I was resisting choosing a niche because I felt like it would limit me. I now see how narrowly defining my target market makes marketing to them so much easier. Once you decide who will buy your product or service you have to plan how to make them aware of how it will solve a problem for them.
3) Revenue model. There are several schools of thought on what it means to have a revenue model for a business. Some say with enough customers, the numbers will eventually work. Others say that if a business grows quickly enough, it can get acquired long before the owners ever have to worry about making money.
I will clearly tell you up front if your looking at the second I’m not the coach for you. That is not my niche. I want clients who are willing to work hard and are in it for the duration. Now the duration may be short lived cause not everyone is cut out for being their own boss. It comes with a great deal of issues. None you can’t handle but at some point you might choose you don’t want too anymore. So I work with clients helping them define what success will look like. And when to cut and run. When you put a house on the market you don’t tell the agent what your bottom dollar is but you should know it. So you can make an informed decision about when to accept an offer that might be less than what you want but in reality meets your definition of success. Selling the house without a loss.
Thinking you’re going to sell the business to Google is a kin to believing winning the Powerball lottery is a full-time career move these are not models of revenue. At least not viable ones. Do these things happen? Sure. Doesn’t mean you bet the bank on it. Planning your revenue model out means you have and idea, it should be simple – someone is willing to pay for what you offer.
It might go with out saying but it won’t. Your model must be a profit model. You can sell dollar bills for 99 cents and generate tons of revenue, but certainly guarantee the company will go bankrupt. You have to have something that you can generate more than your spending. Seems like a simple concept but often the extra expenses of running the business are not always calculated in, especially when your talking about a service. You may charge a set fee for your hourly rate but you might have to prepare 2 hours for every billable hour, that would mean you need to be able to divide your hourly rate by 3 and be able to see a profit.
4) The last order of business is motivation. How motivated are you? Are you willing to put in overtime for a couple years? It is not uncommon that most people when they dream about running their own business think they will be working less hours. In the beginning it usually doesn’t work that way. That certainly can be a goal to work toward but getting a new business up and running is not only a full time job but a demanding one at that. Have a clear realistic picture of what your capable of doing. Then just go do it, and have fun doing it.
For help with your business feel free to contact me. email Chuck