So You Wanna Be In Business? 2 5
keep customers’. An initial and ongoing focus
on customers provides a foundation and purpose
from which to develop business ideas. Clarity about
your customers forces you to make your business
vision real and transferable to employees and
potential customers.
Place: Are you going to sell directly from your own
company or through wholesalers, retailers, catalogue
or the internet?
Promotion: How are you going to promote and
advertise your product? What process is in place
to deal with after sales-issues?
Blood, Sweat and Financial Backing
The biggest investment you can make in your
business is your own time. Most businesses take
around two to three years to achieve some level of
self-sufficiency. This means you must be up for a
very long working week, possibly over several years.
For those with access to venture capital or external
funding, be prepared to hand over a share of your
business to investors. It is worth considering that 30%
of a stable growing business with solid and reliable
financial backing is better than 100% of a small
struggling business with few prospects.
Marketing for Success
Product, Price, Place and Promotion is one marketing
mantra you need to make your own.
Product: What product or service are you selling
in the market? Define it in terms of meeting your
customers’ needs.
Price: Precisely how much will you charge and on
what basis? What price will you sell at retail and
wholesale? How does your price compare with that
of your competitors?
Business Partners = Suppliers
Work with business suppliers who understand your
objectives and who will be there for the long run. If
you are working with a PR company ask them how
their service will help develop your business. I
recently attended a presentation by a PR company
where I was told, ‘PR has got nothing to do with
your customers. We just do PR.’ Needless to say
the company in question did not win the contract.
Get Control over IT
Smart entrepreneurs manage technology and make
it work for their business. Everything a business
organisation does is based on IT. Internal
communications, external marketing, sales, PR,
accounts, stock control and production all rely on
IT. When selecting an IT partner put yourself in the
driving seat. Ask the supplier a few non-technical
questions. At the top of the list should be ‘What are
my business objectives and how will you help me
achieve them?’ Many IT suppliers will not be able to
tell you but if they can answer positively put them
on the short list.