How To Build A Business
How To Build A Business in the modern era. Building a business in the modern era requires the following:
- Good idea
- Technology Acceptance
- Various other factors
We could go on and on, with a list of things that must be done in order for you to build a successful business. However; our focus today will be on a few steps that need to be taken to help insure the success of your business. Obviously, when we listed customers this was done tongue in cheek. Everyone knows if you want a successful business you need customers, but the question here is how too attract the best customers? Let’s start with demographics.
Demographics are the segment of the market that will best be suited for the product or service offered. While it may sound racist demographics are not a racist or sexist term. Even as a marketing professional, with over 20 years in the advertising industry, every time I mention demographics or put in a request for demo info, it feels like I am excluding segments of the market based on sex or race. However; when it comes to business, we must look at the proper demo that is needed to grow a successful business. Let’s say we are a doctors office that specializes in heart disease, wouldn’t it only make sense to market towards people over 40 years of age. We know that the risk for heart attacks climb for men after 45 and the average age for a first attack is 66 for men and 70 for women. So in this example would you advertise on a top 40 radio station or a classic rock radio station? Would you advertise on MTV or History Channel? One is the right choice and the other is a waste of money. So where should you advertise? Well the answer to that lies within your business. What is the product or service you are advertising? What is the average age of the consumer? What is their income level? What is their education level? What is their household size? Are they married or divorced? These are questions must be answered when coming up with a primary demo. Once you know the demo, the next step is to get expert help on the best media to reach the demo. Don’t forget we are here for you 877-510-1007.
Staffing for your location is equally as important as any other aspect of the business. What type of person should you look at hiring? Once again that depends on your industry. If you were operating an electronics store you might want someone who is viewed as an expert in electronics. Who would that most likely be? Probably younger people. While this may be viewed as age discrimination, we must hire the right person for our operations. Be mindful of local and federal laws regarding hiring. There are steps that could be taken to help in finding the right person for the job. If you want a young 23 year old, look at recent graduates. If you want an older workforce, make a requirement for a minimum of 5 years of experience. These will help you weed out the age group that does not best fit your ideal worker. However, as stated before, be sure whatever steps you take in hiring fall within the state and federal laws. If you have questions about hiring please consult an attorney.
Advertising, obviously is our area of expertise. When it comes to advertising your business, you need to put out your message where your customers are. In recent years, the big buzzword in advertising has been “Social Media Marketing”. We will not rehash that subject, however you can read our article on How Social Media Marketing Will Kill Your Business here. Other forms of advertising are available for many businesses, including radio, tv, outdoor, print, direct mail, directories, digital, mobile and sponsorship. Each of these forms offer unique benefits. While we could go on and on about each form, we would have no idea how to present the best form of media here as each business is unique. In this regard, the best we can offer is our number to contact us and ask direct questions 877-510-1007.
Luck in business. I know you may not believe in luck or you may discount it, but you should consider luck. If you have been around business for years, then you know that some form of luck does play a part. Think about two similar products or services. Both begin about the same time, both advertise in a similar way, however; one business takes off and the other fails. Why? Part of it is, luck. Luck as to when you came to market, luck as to which customer visits your business first, luck as to how the market flows. So you may be first to market and think I am lucky, I got there first. However; if the product or service is new and revolutionary then you are going to have to sell the market on why they need what you are offering. Sometimes though as the first to market you get lucky. The product takes off and next thing you know your product becomes synonymous with the industry. In some cases it even becomes the name everyone calls all products associated with the industry. Think of Coke. You can walk into any restaurant in the south and ask the wait staff for a coke, their response will either be, “sorry we only have Pepsi” or “Coke or Pepsi”? In which case you will let them know what type you want. Being first to market doesn’t insure success either. As another example have you ever heard of the F10 or F20 by Eiger Labs? They were the first to market MP3 players in the US in 1998. However; who comes to mind when you think of the first MP3 player? I-pod right. Well they didn’t come to the market until October of 2001, a full three years after the F10 was marketed. So first doesn’t insure success either. Sometimes it is just luck. As another example of luck, I personally know a business owner that operates a horse farm. However; had it not been for her former husband, she would of never been in the thoroughbred race horse business. Today though, she sells her thoroughbreds all over the world. Was that luck? Of course it was! She could have dealt in quarter horses or walkers or any other breed and wouldn’t have the net worth she has today. Her marriage, while it may have failed, led to a business that succeeded. I would call that luck.
The old saying everything starts with an idea. So what is your idea? Is it unique? If it isn’t and there are other businesses in your market space how are you going to differentiate from those already established? You need a business plan that hits on these subjects. You also should perform a SWOT analysis. What is a SWOT analysis, you may be asking? It is a strength, weakness, opportunity and threat analysis for your business. Although I would suggest a few more letters be added to the acronym. How about B for budget, R for financial reserves, D for differentiation, E for electronic technologies, A for advertising. So instead of a SWOT analysis you should perform a SWOT BREAD analysis. This will help you to determine how likely your business is to be successful. If you don’t foresee your threats or opportunities then you will be unable to adjust your course. If you don’t know your SWOT BREAD then how can you know your advertising plans? How can you do anything in business without knowledge of a budget or your cash reserves? You must perform the SWOT BREAD report to help insure that luck is on your side.
We will cover innovation and other parts of starting a business in later articles. We hope that you have enjoyed these articles and will share them on Facebook and other social media sites.