Build Your Business With Four Easy Steps
Creating a successful and profitable business is no easy
task. It’s reliant on many outside factors, including competition, timing and
demand, which you have very little to no control over at the beginning.
Assuming all of these outside factors are in your favor, having a sound
business plan can lead to having a successful business. Here are five steps to
consider when you’re building your business from the ground up:
1. Determine your business. What are you selling?
This question isn’t as easy to answer as you may think. For
example, Nike is in the sportswear business, but the truth is that when you buy
a pair of Nike shoes and a t-shirt at the mall you’re buying a lot more than
sportswear — you’re buying an image, a feeling. You're buying the Nike brand.
Richard Thalheimer, the former CEO of The Sharper Image and the founder of
RichardSolo.com, has worked in specialty retail for more than 30 years. When
asked what business he’s in, he’ll tell you “convenience” or
"innovation" before he specifies any particular industry, and he's
built one of the most powerful brands in America. Keep in mind, there’s more to
a product than, well, the product. Your brand is what sets your product apart
from your competitor’s.
2. Select your market. Who are you selling to?
This step is a bit less interpretive as the first, though
equally important. Who are you selling to? or more importantly, what do you
know about this person? Understanding your consumer is a key to success. hat do
they do? Where do they hang out? What do they watch on television? These are
just a few of the questions that you should be able to answer about your
consumer. Knowing the answers to these questions can answer a lot of questions
of your own when it comes to a devising a marketing strategy. Richard
Thalheimer understood his market for The Sharper Image, probably as well as
they understood themselves. From an article in the LA Times, Tracy Wan, who was
president and chief operating officer under Thalheimer says "Richard has
the amazing ability to figure out the things that people want to have."
This ability to perceive your consumer's desire can only be a result of knowing
them like your neighbor.
3. Create a marketing strategy. How do you speak to these
people?
This is a culmination of understanding your brand and your
consumer. As mentioned in number two, understanding your consumer can answer a
lot of questions concerning your marketing strategy: Where should you
advertise? What's the voice of your brand? What kind of prices are reasonable
for this demographic? In order to engage your consumer, a.k.a. sell your
product to them, you must know where your advertisements will be noticed, how
to speak to them, and how much they will be able to spend, among many of
things. Really, this step should have been combined with the last because who
your market is dictates your marketing strategy entirely.
4. Learn by example. Seek advice from those who have done
it.
There are many books written by professionals who have
already started their own business and have been successful in doing so. One
that comes to mind immediately, as we've already mentioned him a couple of
times, is Richard Thalheimer. "Creating Your Own Sharper Image"
shares the story of how he grew his tiny office supply company, The Sharper
Image, into the thriving enterprise that it has become today.
Remember, building a successful business in not all about
the dollars and cents. Equally as valuable is you brand equity and your ability
to engage your consumer, which is only attainable by understanding them.
Assuming there is a demand for your product, and you can compete with the other
brands, following these four steps shall guide you in the right direction.
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