By Derrel Allen
How to Build Your Business
Creating a successful and beneficial business is no easy task. Success is dependent on many outside issues, including competition, timing and demand. In the beginning of your business, you have little control over these factors. Assuming all of these outside factors are in your favor, having a sound business plan can lead to having a successful business. Here are four steps to consider when you’re building your business from the ground up:
1. Determine your business. What are you selling?
This question isn’t as easy to answer as you may think. For example, Nike is in the sportswear business, but the truth is that when you buy a pair of Nike shoes and a t-shirt at the mall you’re buying a lot more than sportswear — you’re buying an image, a feeling. You’re buying the Nike brand. Richard Thalheimer, the former CEO of The Sharper Image and the founder of RichardSolo.com, has worked in specialty retail for more than 30 years. When asked what business he’s in, he’ll tell you “convenience” or “innovation” before he specifies any particular industry, and he’s built one of the most powerful brands in America. Understand this, there’s more to a product than just the product. Your brand is what sets your product apart from your competitor’s product.
2. Select your market. Who are you selling to?
This step is a bit less interpretive as the first, though equally valuable. Who are you selling to? or more importantly, what do you know about this person? Understanding your consumer is a key to success. What do they do? Where do they hang out? What do they watch on television? These are just a few of the questions that you should be able to answer about your them. Knowing the answers to these questions will set a direction when it comes to devising a marketing strategy. Richard Thalheimer understood his market for The Sharper Image, probably as well as they understood themselves. From an article in the LA Times, Tracy Wan, who was president and chief operating officer under Thalheimer says “Richard has the amazing ability to figure out the things that people want to have.” This adeptness to recognize your consumer’s desire can only be a result of knowing them like your neighbor.
3. Create a marketing strategy. How do you speak to these people?
This is an ascertainment of understanding your brand and your customer. As mentioned in number two, understanding your consumer can provide significant answers concerning your marketing strategy: Where should you advertise? What’s the voice of your brand? What kind of prices are reasonable for this demographic? In order to engage your customer, a.k.a. sell your product to them, you must know where your advertisements will be noticed, how to speak to them, and how much they will be able to spend, among many of things. Really, this step should have been combined with the last because who your market is dictates your marketing strategy entirely.
4. Learn by observing others. Seek counsel from those who have undertaken it.
There are many books written by professionals who have already started their own business and have been successful in doing so. One that comes to mind immediately, as we’ve already mentioned him a couple of times, is Richard Thalheimer. “Creating Your Own Sharper Image” shares the story of how he grew his tiny office supply company, The Sharper Image, into the thriving enterprise that it has become today.
Remember, building a successful business in not all about the dollars and cents. Equally as valuable is the brand equity and your ability to engage your buyer, which is only attainable by understanding them. Assuming there is a demand for your product, and you can compete with the other brands, following these four steps shall lead you in the right direction.
About the Author
Derrel Allen is an information technology adviser for a Fortune 100 company and internet marketing consultant. He is also a professional entertainer, using magic to teach and entertain. You can find out more about him at his website: corporate magic.
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