Automate your Business
You’d Better Know the Answers to These Questions
Yes, there are some important things to consider beyond what you’ll see on this list. But this is a place to at least begin … a reality check of sorts, to make sure that you understand what your business is about, where you’re headed, and how you’ll operate profitably.
[ The focus here is on solo information businesses that are managed online. In most cases, the subject of the business will be related to the owner’s knowledge, skill, talents, passion, training, or life experiences. ]
Why these particular questions?
Every business owner needs to thoroughly understand the premise, the purpose, and the goals he/she has for the business. Journeys without destinations in mind are like ships without a rudder – they are vulnerable to winds, storms, currents, and obstacles controlling the course rather than the business owner. In addition, it’s always best to plan for the unexpected and even the unthinkable.
If you have any doubts or questions about a particular item, it will pay to clear those up prior to opening your doors for business. If, however, you are already conducting your business, it’s probably not too late to take some time out and focus on finding answers to any questions that hold some doubt or confusion for you. Clarity and understanding are critical for all business owners … especially those doing solo business. Sometimes management teams can collectively make up for the confusion of a particular team member … but with solo business it is critical that the owner/operator guide his ship without confusion or conflicting thoughts about goals, directions, and the steps necessary to effective guide the business to profitability and beyond.
Here’s my list for your consideration:
1. What do I know that others will pay me to share? Make sure that you stick to an information subject about which you are an expert (or can become one with some study and work). Deviating from your core competencies and understandings will nullify the advantages you have over other businesses because of your particular wisdom, knowledge and experience in the niche.
2. What will my business be known for? Identify and focus on something that will give your business an edge over all other competitors in your niche. Sometimes referred to as a USP (unique selling proposition), this advantage will set you apart and give your prospects a solid reason to buy from you. It could be anything from fast shipping, to a great assortment of products, to low prices, to a free trial, etc. The USP can also for an important characteristic of your unique business brand.
3. Who is my perfect customer? You must be able to identify and fully describe your perfect customer. He/she is the person that is the very best prospect for your targeted product or service. If you don’t know him and what he wants, how will you ever find him in your marketing? This fictitious person can take on a human personality and seem like a real person that you talk to and focus on as you write your copy for email communications, articles you send to your subscribers, sales letters for your products, and “guinea pigs” for your latest creations.
4. How am I going to generate needed revenue? Many entrepreneurs head into business without a clear recognition of just how they are going to be making money. To answer this question, you’re going to need to know what your revenue model will be, how you’re going to package your information, how you’ll handle financial transactions, how you will deliver purchased products to your buyers, how you will market your products and services, and other pertinent issues.
5. How can I conserve my cash? Cash is always king. New business owners (especially) need to be extra protective of every dollar they have for their new venture. The success of your new business will probably be inversely proportional to the size of your new office desk!
6. Is my business scalable? Most often you will begin your business in a small way with very few customers. Will you be able to ramp up your sales numbers based upon the way your business currently operates? Can you become a dominant force in your niche without having to close up shop in favor of a total overhaul? Some future planning today about you can grow without major interruptions will often result in smoother, more lucrative tomorrows as you transition to a larger business.
7. How well am I protecting myself and my family? Do you have adequate health and life insurance? Have you structured your business such that your personal assets are protected from those who would sue you? Could you run your business if you were laid up, incapacitated, or couldn’t give daily attention to it? What if you were in the hospital for an extended stay with a serious injury or ailment?
8. Do I know who my competitors are and what their businesses are all about? It would be rare indeed for you to be in a business niche without serious competition. The better you know the competition, the easier it will be to implement strategies that will increase your share of the market. Knowing the competition also suggests you know their business model, their products, their marketing strategies (through competitive marketing intelligence), and their reception and reputation within the niche.
9. Am I prepared to stay in business for the long haul? Your business will adapt and change over time, but you’d better be in a position to endure and persist with your business idea. Sometimes small business success and profitability can be traced directly back to owner persistence and his/her ability to solve problems and move beyond obstacles.
10. Will I be able to pay myself and all my obligations on time? Get your business in the habit of meeting your obligations without fail. Trust and confidence will accrue and your suppliers and customers will be loyal because of it. A wise goal for any business owner would be to operate without debt and encumbrance as much as possible.
11. What will I do to take advantage of special, one-time opportunities that present themselves to me? For example, a competitor decides to sell his assets and leave the industry. Do I have, or can I find, money to purchase such a business and fold it into my business without a lot of strain or risk? Do I have funds in reserve to purchase new technology and platforms?
12. How will I market my business? There is not a more important question for the business operator. Marketing is everything. If you can’t successfully spread the word about your products or services, you will not have a business for long. If no one shows up to see your offer, where will you find buyers? I always suggest the owner take the time to draw up a marketing plan. It need not be a large and fancy – but it should help to guide the owner and keep him “on track” as he implements a coordinated strategy to promote the business.
13. How will I manage to keep balance in my life? Owning and operating a small business can be a totally consuming activity. If you don’t learn to strike a balance between the business and your family, your health, your spiritual self, and your associations, you’ll most likely suffer greatly. Certainly your family will suffer if you can’t be there for them because your business needs you.
14. Do you have a workable and realistic business exit strategy? Too many solo business owners don’t think about the fact that someday they may want to exit their business. If the solo owner decides to leave … what will happen to the business? Will it fold, be passed on to heirs, or will the business be sold to a new owner/operator for a handsome profit? Consider the financial alternatives of each of these outcomes? In my mind, selling the business is an added bonus for smart owners.
15. Can I continue to do business with my current set-up if a major emergency or market shift took place and my income was reduced substantially? Do you have business operating reserves? Do you have a plan in place just in case you can’t work in your business for an extended period of time? The unexpected often happens; but negative impacts can be reduced or eliminated with good planning and some forethought about how to operate the business if you (the solo owner) can’t be there daily for awhile.
Yes, there are other questions you can ask in order to have clarity about your business and what is needed to run it successfully. Start with these fifteen suggestions and add to the list as you see fit for your business.
To your online business success,
Steve Browne
www.SteveBrowneDirect.com