Hustle On Your Grind

Tuesday, 22 May 2012

Research Your Business Idea

Somewhere between scribbling your idea on paper and actually starting a business, there's a process you need to carry out that essentially determines either your success or failure in business. Oftentimes, would-be entrepreneurs get so excited about their "epiphanies"- the moments when they imagine the possibilities of a given idea-that they forget to find out whether that idea is viable.

Of course, sometimes the idea works anyway, in spite of a lack of market research. Unfortunately, other times, the idea crashes and burns, halting a business in its tracks. We'd like to help you avoid the latter. This how to on researching your business idea is just what you need to keep your business goals on track.
The Idea Stage

For some entrepreneurs, getting the idea-and imagining the possibilities-is the easy part. It's the market research that doesn't come so naturally. Market research, then, can prove invaluable in determining your idea's potential. You can gather information from industry associations, Web searches, periodicals, government, and so forth. A trip to the library or a few hours online can set you on your way to really understanding your market. Your aim is to gain a general sense of the type of customer your product or service will serve-or at least to being willing to find out through the research process.

Your research plan should spell out the objectives of the research and give you the information you need to either go ahead with your idea, fine-tune it or take it back to the drawing board. Create a list of questions you need to answer in your research, and create a plan for answering them.

The type of information you'll be gathering depends on the type of product or service you want to sell as well as your overall research goals. You can use your research to determine a potential market, to size up the competition, or to test the usefulness and positioning of your product or service.

1. Company. Think of your idea in terms of its product/service features, the benefits to customers, the personality of your company, what key messages you'll be relaying and the core promises you'll be making to customers.

2. Customer. There are three different customers you'll need to think about in relation to your idea: purchasers (those who make the decision or write the check), influencers (the individual, organization or group of people who influence the purchasing decision), and the end users (the person or group of people who will directly interact with your product or service).

3. Competitor. Again, there are three different groups you'll need to keep in mind: primary, secondary and tertiary. Their placement within each level is based on how often your business would compete with them and how you would tailor your messages when competing with each of these groups.

4. Collaborators. Think of companies and people who may have an interest in your success but aren't directly paid or rewarded for any success your business might realize, such as associations, the media and other organizations that sell to your customers.

Another approach is to research is SWOT analysis, meaning analysis of the strengths of your industry, your product or service; the weaknesses of your product (such as design flaws) or service (such as high prices); and potential threats (such as the economy).

Whatever your approach to evaluating your idea, just be sure you're meeting the research objectives you've outlined for your product or service. With those goals always top-of-mind, your analysis will help you discover whether your idea has any holes that need patching.
Checking Out the Competition.

Wednesday, 16 May 2012

Tips To Survive Your Start-up's First Year

One of the riskiest times for any business is when it has just begun. In the first two years, three of every ten startups expire, according to research reports. By five years, half those startups are history.

How can you improve the odds that your start-up will survive that tough first year? Here are five key steps to take:

Talk to customers. Doing market research at the start can help you avoid so many mistakes. You'll have the right offer, at the right price, in the right market.

Choose your location carefully. Whether it's a great website URL that's easy to remember or a retail location with enough foot traffic, make sure your business is where it needs to be.

Keep expenses down. Look for every possible way to save. This will allow you to keep going longer, hopefully until revenue starts to cover your nut. Hire interns, trade services, postpone purchases, or pick up a broom and do it yourself. Do it all yourself, for as long as needed.

Plan for problems. The only thing as sure as death and taxes is that unexpected issues will crop up with your baby business. Sit down and think about everything that could go wrong -- then, make a plan for how you will survive each possible scenario.

Analyze how it's going. Even though it's hard to find time in those crazy start-up days, it's important to stop and look at your numbers to see where your business is headed. Is that where you want to go? If not, change course. Most successful start-ups went through multiple iterations before they found their groove.

Sunday, 13 May 2012

Find At Right Mentor To Help You Grow Your Business

People go into business for themselves for a lot of reasons, including freedom, control, and, of course, the potential to make more money. But few entrepreneurs truly appreciate how much potential lies dormant in their companies.

The best way to tap into this potential is to learn as much as possible about the chosen field you want to branch into, marketing, conventional and unconventional ways to generate cash flow and strategies to develop low-cost, but high-quality leads.

You can get this from books or personal experience, but Hustle... On Your Grind would suggest working with an advisor or mentor to help guide you. While it may seem like an unnecessary or unaffordable expense in terms of time and other resources, outside counsel can be one of the best investments you'll ever make for your business.

You should acquire as much knowledge as you can from a trusted advisor who will hold you accountable for taking the actions you need to be successful, even if you don't always agree or feel comfortable.

Look at it this way: Starting a business is a risky proposition mainly because most first-time entrepreneurs simply don't know the ins-and-outs of running a successful operation. Generally, it isn't lack of capital that kills most businesses. It's lack of knowledge.

So what should you look for in a mentor or advisor? Here are four important considerations:

1. You should have good rapport with your advisor. This doesn't mean you should find someone who will agree with your every decision. But it does mean you should work with someone who is a good fit with your personality and who is willing to challenge your status quo. You can work one-on-one with a mentor, or you can try to find a local network of like-minded owners. Such groups meet regularly to provide advice and feedback about issues facing their members' businesses.

2. Your mentor should be someone who's "been there, done that." Beware of someone who claims to have a "new" system or a "magic bullet" solution. Rely instead on tested veterans who have played the game successfully. Not only can they reveal the secrets of their success, they also can be candid about their failures and how to avoid them.

3. Your advisor would ideally have a framework for driving sales, repeat purchases, cash flow and profit. In the best case, you should work with someone who takes your entire enterprise into consideration, or at least has some good tools, tactics and strategies for the functions that drive sales and profits. Be wary of complex strategies or hard-to-replicate systems.

4. Your mentor should hold you accountable for results. A mentor needs your permission to hold you accountable for what you say you're going to do and when you're going to do it. He or she also should be willing to guide you in a different direction or correct potential errors in judgment. Many hard-driving entrepreneurs find such accountability difficult, but it can be one of the most valuable aspects of mentorship.

Can it be difficult to find an advisor who is willing to guide you? Perhaps. But once you start looking for that person, you'll be amazed at the connections you'll start to make. And once you do find the right advisor, it can make all the difference in the world.

Simply put, no successful entrepreneur got to the top without a great team and a trusted mentor to turn to for help and advice. So don't go it alone. Learn from others who have been there before and achieved the level of success you're seeking. You'll cut years off your learning curve.