5 Questions to ask yourself when setting up in business
Transcript of the video 5 Questions to ask yourself when setting up in business
So, the team and I have decided to put together a series of video clips on things you need to think about when marketing in business. I thought a good way to start would be to work out some questions that you need to ask yourself when you’re setting up a business. Or you may have been established a little while but are failing to get any traction. So, there is a list of five questions I’ve come up with that I want you to go away, think about and come up with the answers for. Hopefully they will be positive and you’ll know the answers.
So, first of is, is there a market for what you are selling? Many people set up a business based on a previous skill set they had in a job as opposed to identifying a real need in the market. So, you need to be quite honest with yourself, speak to some people in your network as the whether they’d buy what it is that you would sell. Really kind of get to the bottom of whether there is a market for what you are trying to do.
Next up will be who is buying what you are selling? So, working out who you’re target audience are and how they want to receive information from you, and where they go to buy whatever it is you’re selling. So, it might be networking, social media, through peer recommendations so you can refine down how you are going to market your business. We will talk about that in a video clip later in the month.
You need to work out what they are going to be willing to pay for what you are selling. Quite often we will meet businesses and they don’t necessarily know what profit margins are, they’ve just kind of come up with a price. So, it is really important to work out if anyone else out there is selling what you are selling, what are they selling it for. But equally to work out what your margins are.
So that kind of comes onto the next question, how much does it cost you to market, sell, do what you do. They you will be able to work out what your profit margin is, because at they end of the day as much as we might love what we do, we still need to make some money. So, it is really important to work that one out.
Finally, on my list is how are you going to grow your business? So, all being well you’ve identified there is a market for what you are doing. You’ve identified who that target market is. You’re selling it for the right price. So, you are getting lots of business. But it may be that it’s just you today, or it maybe you and another, but how are you going to grow that? So, business people call it scaling your business. So, it might be that you are going to work out a way of automating what it is you do so you can kind of package it and make it an online production of what your service is. Or it could be that you are going to grow your team but that’s a different whole other topic that we could go onto again in another video series. But you need to have a little bit of a plan of how you are going to grow what it is you are offering.
So that’s it for this video clip. We are next going to cover off how to market your business and there’s loads that you can do that’s for free. So, we will be doing that later in the month.
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