Suzanne Freiberg |
Suzanne Freiberg, with 20 years of executive experience, founded
SmartWork Career Coaching to empower women in management and leadership
to make the changes necessary to become break through leaders. She has
received extensive training in emotional intelligence; leadership
development; and managing stress for executives. She is a Certified
Career Coach and a Certified Executive Coach, as well as a member of
the International Coach Federation. |
Suzanne Freiberg
has written 1 articles for SB Informer. |
View all articles by Suzanne Freiberg... |
So, You Want to Start Your Own Business? My Congratulations and Deepest SympathyUnderstanding what it takes to simply begin your small business. Suzanne Freiberg
November 16, 2006
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So, you have just come up with the best one-of-a kind idea since
sliced bread and want to launch your own business. Congratulations, you
are on the road to the American dream of becoming an entrepreneur! Now
let me extend my deepest sympathies for the pain you will experience as
you try to get your business started. Hey, don’t stone the
messenger; I’m not the only Negative Nelly on this topic! The facts
are, as stated by the Small Business Administration, 80% of small
business start ups close within the first five years. But, maybe you
and your idea are different and you are prepared to beat the odds. If
you still want to give it that ol’ college try read on. (My apologies
to those of you whom I have completely devastated. However, keep in
mind that if you are still reading and I haven’t scared you off yet…you
could have what it takes to start your own business.) Have
you ever wondered why we are in awe of the Bill Gates and Martha
Stewart’s of the world? Have you ever wondered why they are
one-of-a-kind kinda’ guys/gals and are so well known? Well, I think it
has something to do with the blood and guts they had to donate to start
and be successful in their own businesses. Anyone can start their own
business, but only 20% of those starters are still in business after
five years and even fewer are actually running a successful business;
that means making money. So, this journey definitely takes more than
what 80% of us have. Are you still reading? Ok, you may have what it
takes. What it takes to launch your business (we’ll leave the
part about actually being successful to another article) is what I
refer to as the “Eight Steps to A Successful Start”: 1. Determine Your Niche, 2. Identify Your Ideal Client, 3. Develop Your Unique Value Proposition, 4. Create Your Brand, 5. Prepare a Business Plan, 6. Prepare a Marketing Plan, 7. Develop a Sales Strategy, and 8. Accept failure, learn from it and re-group Please
note that the first eight steps have nothing to do with what you
actually want to “do” in your business. In other words, if your dream
is to be a career coach, you won’t actually be coaching clients until
you have been a marketer, sales person, financial expert, and
strategist. Oh, and for those brave Internet entrepreneurs you will
also have to become an Internet guru. Note: if you know what mega-tags
are, congratulations you are well on your way! Back to my point, what
is important to keep in mind is that for most business launches it
takes a full two years before you are “doing” whatever it is your
business is all about and before you are ever the business owner of
your dreams. Still reading? You are already beating the odds! Let’s
take a look at Step One, “Determine Your Niche.” Your niche is
determined by defining exactly what group of consumers will be your
customers. This group will consist of people who have specialized
interests and needs, and have a strong desire for your service or
product. An example of a strong need would be an attorney who needs a
well organized back office system to keep track of past and current
case loads. The group in this case is “attorneys” and the specialized
interest/need is all about well-organized back office systems. So, if
your product is a well-organized back office system for attorneys, this
guy/gal is in your niche. Once you have identified a group with
specialized interests and needs, now known as “your niche”, you have to
ask and come up with answers to the following questions: Will this group spend money for my product/service? And, do they have the money to spend?
A good way to tell is if they have spent money for similar
products/services in the past. For instance, “moms” might be a great
target market for a new type of stroller, especially since they have
spent money on similar products. However, not all new moms have money
to spend on a new stroller. You would then want to specifically target
moms who have more disposable income – i.e. extra cash for your one of
a kind stroller! Can I easily find and then reach this group of people?
Physicians are easier to locate than moms. Why? Well, one reason is
because physicians are listed as a group in the yellow pages. So, if
your have a product/service that targets a professional group such as
physicians you will have an easier time reaching your niche. Whereas,
if you are targeting moms it might be harder to find that group, since
they don’t yet have their own heading in the yellow pages! Is this group large enough that I can make money selling to them?
If your product/service is eye patches for one-eyed pirates, you may
need to expand your group. However if you are selling a new bra to
women who have had breast enhancement surgery you might have a hit! Is this group small enough that my competition would overlook it?
Yes, your competition might have over-looked the one-eyed pirate
market, but that is because this group is too small. However, if your
product/service is directed towards a specific need that a specific
group has, i.e. women who have had breast enhancement, you might just
have the perfect small market. Have you been a part of this group?
You must know the needs of your niche market. The best way to know
those needs is if you have been in that group and understand the
group’s dreams and desires. If you have ever been an attorney, who had
need of a well-organized back office, then you would be well prepared
to create and offer this service to attorneys. Is this a group you would enjoy working with exclusively?
Maybe you once were an attorney and that is where you came up with this
great back office system. That’s great, but if you got out of the
litigation business because you didn't like your peers….you might want
to re-think your idea of selling your handy dandy back office system to
attorneys. Can you see yourself creating other product/services for this group?
No one wants to be a one-hit-wonder, ala Billy Ray Cyrus and his Achy
Breaky Heart! Once you have sold everyone in your niche one of what you
have to offer – where do you go from there? If your price point is high
enough, maybe you go on to retirement in Hawaii, however, if you are
selling a $1.99 product, you will need a way to expand your line as
your business grows. Are you passionate about your product/service?
The
amount of time and energy, or as I mentioned earlier “blood and guts”,
that it will take to launch a business is huge! You had better
passionately believe in what you are doing and whom you are doing it
for, if you want to successfully launch your business. Well
there you have it, the first step in launching your business;
Determining Your Niche. Take some time and answer all of the questions
outlined above for your product or service. You might find that you
want to make a few modifications to fit your niche or maybe you need to
change your niche to better suit your business. Either way, just by
taking the time to complete this first step you are already on the road
to the American dream of becoming an entrepreneur. Congratulations!
(And, a little sympathy for your time and trouble!) In the
coming weeks look for “So, You Want to Launch Your Own Business? May I
Offer My Congratulations and Deepest Sympathy. Part II: Identify Your
Ideal Client” Keep in mind that a career coach can help you
through all of these business launch steps. Career coaches act as
guides on a journey of greater self-awareness and clarity, helping you
to find your true passion. Your coach can help you create an action
plan to get from where you are to where you want to be in your career
and in your life. Once you are working in your strengths you will find
you are passionate about what you are doing and the journey is not as
painful as if you had made it alone.
To
find out how a coach can help you, contact SmartWork Career Coaching @
805.376.1906 or e-mail @ [email protected]. One of our Career or
Executive Coaches will be happy to discuss your coaching options.
© Copyright 2006 Suzanne Freiberg. All Rights Reserved.
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