As you load up your sparkling new shelves with brand new inventory you wonder, now what? You finish up that last piece of code to open your software business, now what? You have been dreaming about starting a business for years and you have finally done it, now what?
Starting off, a new business will have only one goal: SURVIVAL. If the business sells enough, it can stay in business and make a profit. If not, it will close down, lose money for the owners or even force the entrepreneur into bankruptcy. A practical strategy for the the next stage of your business must be quickly formulated. Here are three ways to help.
First, target your market and let your target market know you exist and what you do. This is done by marketing your business to your potential customers. A business can spend a lot of money on advertising and marketing, but is it reaching its pool of potential customers? If you target market is upper middle class 35-50 year old women it would be a waste of money advertising on a TV show that targets 18 to 35 year old male NASCAR racing fans. You must know who your target market is and aim your entire marketing effort towards that target. It is not rocket science.
Second, set an appropriate price point. This can be a tricky task as it is mixed up with psychology, basic human nature and perceived product value. for example, Tiffany & Co. and Wal-Mart both sell watches. Tiffany & Co. profitably sells watches at price points of $20,000 or more, Wal-Mart profitably sells watches with prices starting at about twenty dollars.
A watch is just a mechanical device that divides time into hours, minutes and seconds. So why is there such a huge difference in price? Well a watch is not just a watch. Tiffany & Co. has targeted its market and positioned itself as a provider of very elegant, high-end jewelry. In this segment of the market, price and even mechanical accuracy are less important than design of the watch and the status of the brand. At Wal-Mart you can buy an inexpensive watch that may need replacing in a few years but could be a more accurate time piece. Both companies make money selling watches at different price points because they target very different markets.
Third, find ways to make it easy for your customers to purchase the products or services of your business. This seems straight forward, but it is not. Customers tend to buy more (20 - 50 percent more) if they can use a credit card than if they use cash or a check. Somehow when people use credit cards it does not feel like they are spending 'real money' and therefore spend more. Also consider using companies like PayPal for the ease of use by your customer.
From the moment you open and every moment from that point forward, understand who your customers are, set price points to attract your targeted customers into your business, know the tricks that will keep them interested in your business and coming back.
There is never a straight and simple answer to these questions as the marketplace is a moving target, dependant on the changing wants and needs of the customer. If you need in determining the 'what now' or next steps to building your successful business contact your local University of Georgia's Small Business Development Center at Dalton@georgiasbdc.org for advice and suggestions.
