31 Oct 2018, 09:30 — 4 min read
It is very important to have vision and clarity before starting a new venture. It is vital to know why you are starting a business, what is your unique value proposition and what are your growth opportunities. In the words of Dave Thomas, the founder of Wendy’s, “What do you need to start a business? Three simple things: know your product better than anyone, know your customer, and have a burning desire to succeed.”
Asking yourself some basic questions is a great start and it is necessary when you are establishing a new venture. That said, the questions you ask really do matter.
Here are five questions every startup entrepreneur must ask themselves.
1. What is my specialty?
Your product/ service must differentiate itself from the competition. For that, you must know what your specialty is. Specialty is the quality about your product that makes it stand out from the rest.
The specialty of your product can come from different aspects: where it’s made, the unique quality of the product, how it’s made, pricing, a philanthropic component or your customer service.
The only way to make a huge margin in business is to have a Unique Selling Proposition (USP) that brings more value to customers than anyone else in the market.
2. What problem am I solving?
My product will solve this problem. If you can’t answer that, stop there and go back to the drawing board. It’s important that your product solves some sort of need because that’s what determines its value.
When you think of solving a problem, your business has a purpose.
3. Who is my customer?
In the words of management guru Seth Godin, “Don’t find customers for your products, find products for your customers."
You must have a clear idea of who will be the end user of your product or service. A product that does not create any interest in the hearts and minds of customers, is not likely to succeed. Therefore, you must identify your customer through market research and tweak your product as per their needs.
4. Who else is doing this?
It’s good to do market research and have information about your competitors in the market. Conduct a simple google test to see who else is doing what you are doing. If someone is selling ‘x’ product it doesn’t mean you cannot sell that product, but it will be helpful if you do some research and see how you can provide those services in a better manner.
5. How can I bring this product to the consumer more economically?
It is not just about making profits by selling products, but the focus is how can you provide your customer with better services and the best value for money.
Many companies do research and development before launching anything new in the market to reduce the cost of production without compromising on product quality. But if you are a young entrepreneur with limited funds, explore creative ways to cut to down your cost.
Becoming an entrepreneur fundamentally changes your life. You must have complete clarity and and create a vision for your business before you embark on your entrepreneurial journey.
Posted byGlobalLinker Staff
We are a team of experienced industry professionals committed to sharing our knowledge and skills with small & medium enterprises.
25 Aug 2021, 10:04
Most read this week