Do you have trouble establishing your business? Have you ever asked yourself why your business just doesn’t seem to grow? Keep reading because you just might encounter an unconvenient truth.
There is a common problem, that many startup entrepreneurs share:
They can’t even answer the most fundamental questions regarding their own business!
5 Questions Every Entrepreneur Needs To Answer
Would you believe me when I tell you, that many people who complain about a lack of customers don’t even know about their target customers? I was recently networking with a web designer on Twitter that didn’t even have a website for his services and upon asking him about what he has to offer, he could barely name me any details.
However, a quick look on his timeline revealed to me that he was into a passionate debate about how difficult it is for freelance web designers to find work when there’s so much competition.
Don’t make that mistake!
We often underestimate certain aspects of our business and think we will naturally find all of the solutions to our problems as we move along. That’s not going to happen. It is important to think about the core aspects beforehand.
In a future post, we will therefore discuss the importance of a business plan but today, let’s focus on five of the most fundamental questions:
Do you solve a customer problem and if so, what?
The first part of this question should actually be rhetorical, because obviously you want to solve a customer problem but as we found out earlier, that’s when the first problem arises for many people already.
No matter how passionate you are about your craft, if you don’t solve customer problems, you miss out on the big money. Actually, you are most likely not going to earn any at all.
Always remember: Customers have a lot of problems and they pay for solutions.
If they don’t have any, create one that requires your expertise.
What’s the value proposition of your product or service?
There are several ways to stand out from the crowd.
Surely, there are companies that aim for the lowest price to play along with the “Good & Cheap” mentality but if you really want to succeed with your business, you are looking for value.
Create a product or service that offers a superior value with respect to your competition, otherwise you will end up with a commoditiy product.
How Do You Attract & Keep Customers?
Creating value is great but you also need to think about ways to reach out to potential customers and clients. Make your customers happy by exceeding their expectations or offering amazing support.
You should also think about creating competitive barriers because the competition always goes where they money is.
How Do You Gain Market Share?
You are either creating a new market or expanding the overall market.
However, first of all you need to develop strategies and have enough capital to do so.
Gaining & loosing market share have one thing in common: Both are expensive first of all.
How Do You Fund Your Growth?
The last question covers one of the most obvious problems, entrepreneurs face in the beginning:
Money, or more specifically, the lack thereof.
You need to have a plan on how to fund your business or chances are, you run out of cash.
This is one of the main reasons why startups fail.
Fortunately, there are more opportunities now than ever before thanks to crowdfunding.
You should visit websites like kickstarter or indiegogo for further information on this topic.
If you are able to answer all of the above questions, you will have a good start for your business and if not,
I hope that this article at least sparked your motivation to think about it.
Be prepared and you have a better chance than most of your competitors.