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| Resources & Tips for Small Business Start-Ups by Leslie Godwin, Career & Life-Transition Coach Author of "From Burned Out to Fired Up" |
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| 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 hired a P.R. firm to create a unique image for his company, but he didn’t renew the contract with them 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 even if he did, he lacks the focus to maintain that direction long enough to build a reputation and benefit from his efforts. The best, and least expensive, time to give your business direction is 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. Six Steps to Small Business Success 1. Start with a Good Enough Idea 2. Put Together an Advisory Team 3. Do Your Market Research 4. Define Your Target Market 5. Choose Appropriate Price Points 6. Plan for Future Success 1. Start with a Good Enough Idea A 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 a concept from psychoanalyst and pediatrician D.W. Winnicott who wrote about "good enough parenting" as more beneficial than "perfect" parenting. 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 flesh it out and talk to people in your prospective field. Hopefully, you'll find that your initial idea was more of a starting point than 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 usually the best ideas. 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 Team We 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 many 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’ll need to include on your initial Advisory Team. 3. Do Your Market Research After 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. At first, 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. Now I appreciate that 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: o Local experts (People who love what they do usually enjoy talking about their work with like-minded people.) o Trade associations (There's a huge book your reference librarian can show you that lists more trade/professional associations than you can imagine.) o Government reports (We all hear about ridiculous government studies that waste our tax dollars. But they occasionally study valuable issues. You've probably funded a study that can help you understand your target market better and present a stronger case for your business idea.) o Your competition (I've had great success talking with supposed competitors, both in my community as well as those across the country. In some fields it's appropriate to collaborate only with people who don't directly compete for your business. This is easy to do by email.) o Surveys (You can get incredibly valuable information from prospective customers. If you don't know who they are, you need to go back and flesh out your idea some more.) o Focus Groups (Basically, you get some people together who match your ideal client demographics and ask them questions. Thank them by giving them lunch and a gift related to your business if you don’t pay them for their time.) 4. Define Your Target Market Review your market analysis and identify your target market. Get to know this portion of the population very well. 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. And, whatever you do, don’t pick a market that forces you to compete on price. That reduces your products or services down to a dollar amount and reduces your enjoyment and feeling of purpose, as well. 5. Choose Appropriate Price Points Your 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. But 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 repeating ... don't compete on price! 6. Planning for Future Success Schedule 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. Do 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 on a quarterly basis to reflect on whether you are doing something you believe in and enjoy. 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: o Keep reevaluating and getting to know your target market o Consider how to most effectively reach, and influence, your target market o Check to see if you are sending a clear message to your target market, and if it's delivered consistently via every medium. Your radio ads for the holiday season should give the same message to your core audience as your print ads last July. The content will vary, but you can't claim that your restaurant offers gourmet cuisine in a romantic setting one month, and then claim to be the cheap, fun hangout for parents with toddlers the next. Keep Track 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 to own a small business. At least not if you need to make a living from your new venture. 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’ll feel about the prospect of spending your life with your betrothed. So learn from Joe’s mistakes. Plan ahead, or pause in mid-stream, to make sure that your efforts to grow your business are logical, consistent, and create or support a clear niche for your products or services. And make sure that what you’re doing is worthy of your time and efforts. . |
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