In this article you will learn 3 simple yet fundamental components to building a successful small business.
The problem is that most small business owners jump into their business without having a firm grasp on the 3 components. Once they gain momentum they may be entirely on the wrong track, and inevitably head down the wrong path.
So here are the 3 fundamentals to know before starting your small business:
Know Your “Why”
Why are your in business? You would be surprised to find that many business owners never answer this question! You need a very clear vision and purpose.
Are you selling a product? If so, does the product solve a problem or simply make life easier? Are you selling a service? Is that service in demand, or do you need to create that demand? Is that demand sustainable over time?
Is there a market for your product or service? After all no sense in going into business if you can’t find customers. Or have you come up with the next greatest thing and are building your small business on the idea that “if I build it…they will buy it”?
Answering these questions tell you the “why” of your business. Once you know the “why”, It’s important to understand that it has to align with your customers needs and/or desires. You may think your product/service is awesome, but if you don’t meet a customer need or desire, then you won’t succeed in business.
Know Your Target Audience
Most business owners think of their target market in terms of generalities. You need to get super specific, and the way to do that is to create a buyer persona.
What is a buyer persona? This is a semi-fictional representation of your ideal customer. You build this persona using market research and real data about your existing customers.
Consider demographics, buying behavior, motivations and goals when defining your buyer persona. The more detailed you are, the better you will be at building the product or service that your target audience will buy.
Know Your Market
Okay so you have a clear vision and purpose and know the “why” of your small business. You defined your buyer persona and you know who your target audience is.
Next step is to do your market research. First and foremost there must be a demand or need for your product or service. If you had to pick one or the other, a need would serve your business better. People have problems and are always looking for solutions to those problems. So the need is there, you simply need to tap into it.
Who is your competition and how can you beat them? If you make your product or service cheaper or faster, will you take a bite out of the competition? Or do you build your business by providing the “high’ end solution for your customers in order to differentiate yourself from your competitors?
It’s a completely different ball game to position your business as cheap vs. luxury. Doing this research will help you understand all the ramifications of whatever approach you take.
To wrap up….when you know why you are in business, who your target audience is and have done your market research, you have the building blocks of a wildly successful small business.