How to start a business
All new entrepreneurs have to deal with how to choose a niche, find their client, and promote a product on their own. In this article we tell how not to repeat the typical mistakes of novice businessmen, prepare to enter the market and lay the right foundation for their business.
Mistakes on starting a business
A business starts with an idea. Next comes the choice of a niche, reaching your audience and developing a “map” of goods. Below we will analyze all the steps in more detail, but first we will dwell on the common mistakes made by beginning entrepreneurs when starting a business.
At the beginning of the path, it is logical to look back at the best, but blind tracing of a business idea is not an option. Focusing on niche leaders, think about how your product will stand out on the market and become a pioneer in the industry.
Buyer interests not in first place
The client is not interested in the brand, but what it can give. Make sure that the positioning of the business is on the right track, the value of your offer is clear to the client, and the brand speaks not only about itself.
How to find an idea
The desire to start a business does not always give rise to a business idea. If you want to become an entrepreneur, but have no idea what to sell, answer these questions: what do you like to do? What do you want to learn, and what do you already know? What can you do for a client today? And finally, does the client need this?
Running a business is pointless if your product does not meet the needs of the buyer – entrepreneurship begins with solving some kind of customer problem. Before entering the market, check whether your offer will be in demand: try to sell the product to first customers. Analyze what products and services are popular with competitors and why, and compare with your own.
If you already have a business idea , ask yourself the same questions anyway and make sure that none of them are perplexing.
How to choose a niche and a key segment
Count the number of potential customers
At the very beginning, it is important to focus not on the entire niche, but on a specific segment. To whom exactly are your services useful and how often will they be used? For example, if you open a makeup studio, your clients can be professional artists, models or ordinary people – decide who you will make the main bet on. Search in the public domain and use statistics to make the forecast more accurate.
Evaluate the solvency of the audience
The market can be huge, and the profits from it can be modest. Forming a business plan, proceed not only from the potential reach, but also from the solvency of customers, because the order of the cost of the product depends on it.
Find out how many competitors you have
Analyze how many offers are on the market and how they are presented – can you stand out? If there are many competitors, focus on a narrower niche.
Identify your competitive advantages
Put yourself in the shoes of a customer and think about why your brand is better than others. The lower cost of goods should not be the only advantage – do not forget about the consumer value of the product.
How to reach the target audience
Use the appropriate marketing channels to let consumers know about your product. Find answers to these questions: what sites do potential customers visit, how and where do they go after work, what bloggers and brands are watched, and which videos are watched?
Google AdWords will be useful tools: the services provide monthly statistics of search queries for keywords. For example, this is how the Yandex assistant page looks like if you enter the word “yarn” into the search field.
After analyzing the information about the target audience, you can competently build a promotion and gain access to customers.
How to think up a “map” of goods
Start with a list of the problems customers are contacting your market with and come up with services and products that can solve them. Brainstorm and write down everything that comes to mind. From the resulting list, select the 3-4 most successful products – the “map” of goods whose value will be gradational: from free or very cheap to the most expensive. The usefulness of a product or service should increase in proportion to the price. It is logical if the highest cost for the client will be the guarantor of an individual approach or uniqueness of the offer.
Keys to Success
Remember that errors are useful.
Draw conclusions from your own and others’ negative experiences and do not give up after suffering a series of defeats. Problems and crises are normal, they are the ones pushing for the search for new solutions.
Your business requires no less discipline than employment. Moving forward is impossible without goals and specifics – set tasks for the day, month, year, etc.
Drop perfectionism: it is better to launch an imperfect product on the market and quickly modify it in the process than give odds to competitors and sacrifice the opportunity to earn money.
At each stage, analyze the work done. If you understand that the next step does not bring you closer to the goal, change the plan.