Start Your Own Business (14 page)

6.
Test
. Once you have a match between niche and product, testmarket it. “Give people an opportunity to buy your product or service—not just theoretically but actually putting it out there,” suggests Falkenstein. This can be done by offering samples, such as a free miniseminar or a sample copy of your newsletter. The test shouldn’t cost you a lot of money: “If you spend huge amounts of money on the initial market test, you are probably doing it wrong,” she says.

7.
Go for it!
It’s time to implement your idea. For many entrepreneurs, this is the most difficult stage. But fear not: If you did your homework, entering the market will be a calculated risk, not just a gamble.

“If you work just for
the money, you’ll never
make it, but if you love
what you’re doing and
you always put the customer
first, success will
be yours.”

—RAY KROC, FOUNDER OF
MCDONALD’S CORP.

 

 

• Who are your target clients?

• Who aren’t your target clients?

• Do you refuse certain kinds of business if it falls outside your niche?

• What do clients think you stand for?

• Is your niche in a constant state of evolution?

• Does your niche offer what prospective customers want?

• Do you have a plan and delivery system that effectively conveys the need for your niche to the right market?

• Can you confidently predict the life cycle of your niche?

• How can your niche be expanded into a variety of products or services that act as profit centers?

• Do you have a sense of passion and focused energy with respect to your niche?

• Does your niche feel comfortable and natural?

• How will pursuing your niche contribute to achieving the goals you have set for your business?

AAA Inc. is a spunky, imaginative food products and service company aimed at offering high-quality, moderately priced, occasionally unusual foods using only natural ingredients. We view ourselves as
partners with our customers, our employees, our community and our environment. We aim to become a regionally recognized brand name, capitalizing on the sustained interest in Southwestern and Mexican food. Our goal is moderate growth, annual profitability and maintaining our sense of humor.

1.
Why are you in business?
What do you want for yourself, your family and your customers?

Think about the spark that ignited your decision to start a business. What will keep it burning?

2.
Who are your customers?
What can you do for them that will enrich their lives and contribute to their success—now and in the future?

3.
What image of your business do you want to convey?
Customers, suppliers, employees and the public will all have perceptions of your company. How will you create the desired picture?

4.
What is the nature of your products and services?
What factors determine pricing and quality? Consider how these relate to the reasons for your business’s existence. How will all this change over time?

5.
What level of service do you provide?
Most companies believe they offer “the best service available,” but do your customers agree? Don’t be vague; define what makes your service so extraordinary.

6.
What roles do you and your employees play?
Wise captains develop a leadership style that organizes, challenges and recognizes employees.

7.
What kind of relationships will you maintain with suppliers?
Every business is in partnership with its suppliers. When you succeed, so do they.

8.
How do you differ from competitors?
Many entrepreneurs forget they are pursuing the same dollars as their competitors. What do you do better, cheaper or faster than competitors? How can you use competitors’ weaknesses to your advantage?

9.
How will you use technology, capital, processes, products and services to reach your goals?
A description of your strategy will keep your energies focused on your goals.

10.
What underlying philosophies or values guided your responses to the previous questions?
Some businesses choose to list these separately. Writing them down clarifies the “why” behind your mission.