A VITAL GUIDE FOR PEOPLE OWNING A BUSINESSES
This article will not give you a secret recipe how to make money online, neither can it confirm if your business idea, is the best business idea in the world. Instead, the article will together with the associated FREE E-Book, give you a fast and solid foundation to validate your business idea, and build a solid plan.
Finding answers to below questions is more or less a prerequisite if you would like to build a solid business to earn money online.
The Principle: "How to validate your business idea & grow your business" is not only important for your online business but import for every business
OK You Have An Idea - Let's Get Started
Would you choose your means of transportation without knowing your exact place of departure – or base important strategic decisions on nothing but gut feelings – of course not, as everything potentially then can go wrong?
The same goes for a business without a validated business idea, and a solid plan. Even you have the best business idea, you need to know the idea in details so you can build a solid plan of actions, as it potentially can improve your business dramatically, or even save your business if it is implemented correctly.
By being concrete in the validation of your business idea, you will not only optimize your sale, and your productivity, but you will also reduce your cost dramatically, as you will know exactly what to do, how to do it, and when to do it. This also mean you will know how, when and why to invest in your business.
Quite frankly I don't get it, if people don't validate their idea to make a plan, and I get seriously frustrated when people skip this step. If you owning a business, want to earn money online, and maybe even dream about being able to work at home as your own boss, then you should not base this dream, your time and money on coincidences – you should manage a serious business towards your planned goal. If you dream without planning, you could just go invest in a lottery ticket – this will give you the same small chances for success.
A validation of your business idea should be done BEFORE you start your business AND continuously over time to be sure you regularly adapt to your market. This guide is not meant to substitute the need to build a traditional business plan; however, this guide would be a valuable asset, when you start to build your plan (for A-Z info how to build a business plan, I suggest you browse through Harward Business Review).
Knowing and understanding your current situation is an important baseline for business improvements, and it is your compass in designing, planning and realizing your intended target state. You need to know your business idea in details to figure out where are you going, and who your key customers are. You need to know who your customers are in details, so you can sharpen your business idea and tailor your marketing to fit your key customers correctly.
Below I give you some input from my easy to read E-Book. In the FREE E-Book you will find more than 75 questions, tips, and tricks how you can map out your business idea, and build a solid foundation to grow your business. I also include personal experiences and recommend tools that might help you speed up the process.
It is said, “If you market to everyone, you are marketing to no one”; meaning, if your marketing/description of your customer is too broad, it is bad for your business. You really need to be specific when you describe your typical customer. It's crucial to get inside your audience's head and figure out what makes them tick. What problems are they facing? What fears are they experiencing? What goals are they pursuing? Based on the answers to questions like below, you should aim to create a ‘customer persona'. This persona is a fictional character, who exhibits all the traits an “average” customer of your target audience is expected to have. Before you answer each of the questions, you might consider giving each question a value, based on how important the question is to your business, as it would help you focus on the most important things, first. You can find more questions and relevant tips and tricks in the E-Book.
The Questions & Recommendations:
Do Your Business Idea Clearly State The Purpose Of Your Business And What Type Of Market You Operate In
- What customer problems do you solve
- Should you outsource some of your tasks to free up your time, so you can use it on more important areas in your business (see page 6 in the E-Book for details)
Who Are Your Potential Customers, And How Do You Engage With Them
- What age and gender are your customers
- Can you turn uncontacted segments of people into potential customers by doing something different (twisting your product and/or change your marketing etc.)?
- What are your customers' typical interests, education, income and online habits etc? What do your customers say online, what topics do they follow, who do they interact with and why? (social listening tools can help you answer this question)
- What are your customers ‘wants', ‘needs', ‘frustrations' and ‘pains'
- What is your customers' perfect solution?, What do they want more than anything else?
- What objections may your customers have before they buy from you
What Is Your ‘Pain Threshold' Regarding Investing Time And Money In Your Business
- How much time and money are you WILLING to put into your business before you should see specific financials results or a ”normalized” number of hours, you need to put into your business to make it grow
- What are your long-term ambitions? Is your business a part time project, will you be happy to earn pocket-money, be able to quit your 9-5 job, or do you want to be rich?
- How much time and money do you actually NEED to put into your business? Is there a good balance between what you answered you were willing to put into your business vs. need to put into your business, and are your family and your current job situation OK with the time and money needed?
How Many Products And/Or Services Do You Need To Sell To Have An OK Business
- How much do you need to sell according to your financial threshold plan
- Have you considered Secondary Income Streams to fund your primary business
How Is The Competition In Your Market, & What Is It Based On
- Is the competition in your market, high, low or average (and can you minimize the competition by twisting your product a little)
- Is the competition based on high knowledge, low price, uniqueness, quality or volume etc?
- How can you twist your product, either by making it a bit different or adding something special, so your products stands out, and will not be 100% comparable with the majority? When your product is not comparable you will lower the level of competition you are up against.
Validate The Competition By Investigating The Market Through Online Sources
- In general, you should keep an eye on your competitors, so your can learn from them, while you get a clear picture what you are up against, and how you can stand out.
- To validate the competition, and your competitors, you should try to look for the same type of product/service you sell, and look through your competitors' web properties. You can use places like Google, YouTube, Facebook, Blog hit lists (Alltop.com), Udimy, Amazon, Clickbank and Alibaba
Do You Have The Right Balance Between Passion, Knowledge, Your Business Idea & The Market
- It is important, with the above headline in mind, to ask yourself if you have the right balance between passion, knowledge, your idea, and what the market is looking for. You need passion to continue to work dedicated and have fun, but you also need to ensure your knowledge and the idea behind what you are selling is strong enough to do something special, related to your customers’ needs, or you will not generate a healthy business.
How Does Your Business Idea Ensure You Keep Or Reinforce Your Position In The Market
- Can you keep and reinforce your position in the market, based on you future resources, including knowledge, time and money?
- Do you have access to Mentors, Groups, Programs And/Or Courses to continuously grow your knowledge
How Will The Market Develop In The Future? Will There Become More Or Fewer Customers
- Some industries, especially within technology, change rapidly; others are sensitive to the global economy (such as the real estate and car industry), while others usually have the same demand (people will always need food, medicine etc.). How do you predict the future for your market, and can you expect different sales, based on seasons and holidays etc.?
You Can Sum-up The Above Questions To The Following 3 Questions When Validating Your Business Idea:
- What problem do your customers have
- How does your product or service solve the problem
- How can you twist your business idea, so you make your product and/or service unique in the market, to give yourself the best competitive advantage and hopefully improve your earnings
If you are serious about building and improving your business, you need to build a solid plan. This Easy To Read E-Book Will Help You. If you want more tips and tricks how to build and improve your business, also feel free to Join Our Free Weekly Webinars.
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