Experts say that only about seven percent of people decide to take the risk of quitting work and starting their own business. At the same time, only some of them get tangible results. And the rest sooner or later curtail their enterprise and return to work in their specialty.
The question of what is necessary for success in business is paramount for everyone. Who wants to start a business, has just embarked on the path of entrepreneurship, or already has any business experience. Many have taken inspiration from entrepreneurs to create email marketing agencies for themselves. And there are others who have taken inspiration to build a food chain system etc.
In a short article, it is impossible to give comprehensive instructions on how to become a successful entrepreneur. But we will try to talk about all the key points, the neglect of which can be detrimental to the company.
Table of Contents
Unique concept
In today’s saturated market, it is quite difficult to find an unoccupied. But promising niche, so it makes sense to study those segments that are relatively free from competitors.
Obviously, it is difficult for a novice businessman to seriously compete with experienced “colleagues”, so even at the stage of the idea. The future owner of the company has worries. They say that we will not be able to compete with large players.
There are a few tricks that can help establish a business.
Target Audience
If you do not have an enterprise yet, it makes sense to pay attention to those industries in which you are well versed. It is unlikely that a cook will be able to correctly assess the needs, wishes, and financial capabilities of an audience interested in buying, say, agricultural equipment. For example, Alexander Zmanovsky, the owner of a distributor company for European generators, graduated from a technical university. You may not have a higher education. But some areas in which you understand better than others will certainly be found.
If you already have an enterprise or at least a clear business idea. It is important to specify the portraits of your potential customers. Not just a “woman,” but a “working woman,” “a mother of many children,” “a student”. Which of these consumers most needs your product or service? For which of them is your product unavailable? For what reasons do these categories prefer a competitor’s product? Can you somehow influence their choice (change the schedule, location, provide a discount, installments)? Answering these questions, it is necessary to draw up a financial plan for the project. Just in order to understand whether efforts to attract certain categories of buyers will be justified or more profitable to sacrifice them.
Studying your target group is also useful for other reasons. According to Pareto’s law, 80% of profits to any business come from 20% of consumers. Having studied the habits, dreams, needs of this group. You will master the algorithm and learn how to build communications with the new most profitable clientele.
Specialization
The mistake of many newcomers thinking about how to become a successful businessman is the desire to expand, the desire to provide the buyer with everything related to the main product.
Diversification is, of course, an important business tool if you have enough resources and experience to control several areas of activity. However, at the initial stage, the desire to diversify the range can “eat” all your capital. Suppose you decide to orient your business in the field of building materials. Of course, you would like everything in your store to be sold – from screws to paving slabs: experience tells you that the buyer prefers to buy everything in one place at once.
However, there is almost certainly a construction supermarket in the area. So is it worth it to invest in additional purchases, rent, staff? After all, your competitor has already earned a reputation, has gained confidence, so it is difficult to expect that consumer preferences will instantly turn to your side.
Perhaps at first, it makes sense to limit yourself to a small wallpaper store? But let your assortment include the whole range of colors, textures, purposes, even premium class wallpapers. Because in any city there is a layer of wealthy consumers who value quality and not affordable cost. If you are able to add impeccable service to the assortment, then you are guaranteed to win their sympathies. And they can become the very fifth part of your clientele, which brings the main profit.
Service Offerings
In modern conditions of fierce competition, service is what is necessary for success in business. Unfortunately, many still believe that the service is friendly service. In fact, the complex of services includes the convenience of location, the provision of comprehensive information, the provision of various terms and forms of payment, related services.
If the client is comfortable and comfortable with you to cooperate. He is often ready to put up with the high price of the product, and sometimes even with its relative quality. And in this regard, representatives of small and medium-sized businesses have a significant advantage: large companies are forced to establish common standards of service.
Small businesses are more flexible and can provide a truly personal touch. The owner does not work from the inside. He builds what is necessary for success in business, namely, a strategic system: marketing, production, sales, management. Nobody can do this except you.
Marketing strategy
A marketing strategy is a type of management that relies on human potential as the main valuable resource, focuses on consumer needs in its activities and has sufficient flexibility to quickly respond to changing conditions, thereby achieving a competitive advantage.
A marketing strategy is expressed through a set of basic management decisions. These are based on the desire to achieve the main goals of the company and the conditions of the internal and external environment. They allows you to clearly identify priority areas of activity and the necessary pace of current tasks.
Sales strategy
How to succeed in business, if you neglect the sales strategy? The sales plan is the basis of the sales department. Which is in fact, the only division of the company that makes a profit, real money.
A particular sales style is determined by the marketing strategy, the main goals of the company: negotiation standards, conditions for concluding deals, additional bonus packages are developed on the basis of corporate culture and objectives (managers can be focused on wholesale trade, operating time of the customer base or immediate profit). In addition to the main goals, the sales plan should take into account: characteristics of the target group, features of sales methods, budget for the implementation, and implementation of the strategy.
