As each year passes, we see a rise in the number of new businesses and last year was no different. Despite the global pandemic, HMRC saw a 3.5% increase in new business registrations. Why? Because people, like you, know that they have more to offer the world than their 9-5! Upon starting a business however, many people find that it is not easy and is a journey filled with many mistakes. Today we’re going to tell you the number one mistake that you cannot afford to make as a new business owner and how you can avoid it, so you can create a successful business.
There is a common fear amongst aspiring entrepreneurs that business is “not an option” for them or is “too risky” because we live in a saturated market. With more people choosing a life of entrepreneurship, many new business owners believe that there will not be a great demand for their product or service. In an effort to combat this, they make the number one mistake new businesses can make – they try to cater to the masses. This is not effective business.
“Everyone” is not your customer.
While the idea behind it suggests that catering to more people maximises the number of potential customers (and therefore profit) you will have, the reality proves quite the opposite. Why? Because when you cater to everyone, you serve no one. Every customer is looking for something different, so it is almost impossible to have a one-size-fits-all business. Trying to be that business is the number one mistake that start-ups make.
So, what should you do?
Identify your ideal customer and establish your niche around them. How?
Identify the ideal
You’ve already established your idea, now you need to think of who it will benefit. Exactly who. Define your ideal customer so you can tailor your business accordingly. Having a clear understanding of your target audience helps you to create the best product and experience for your customers and ensures that they will keep coming back. To start, think about their age, gender, occupation and most importantly their location (online and offline).
Pay close attention to their buying habits and their pain points.
Once you’ve identified your ideal customers, you need to find out what they actually want out of a product. Is there room for your product in their routine? What pain points are being left unresolved by the current market? What product or service would serve this need? How much would they be willing to pay for that service?
Your customers make purchases based on what they need (or think they need!) This means that you need to pay attention to what they are already spending their money on. Find out what is important to them and position your business to cater to those needs, habits and desires.
Ask for feedback.
What do your customers like about your product? What are their biggest gripes with it? What about with the industry? You need to know all of the answers to these questions.
To be successful, you must develop an intimate relationship with your customers. So, speak to your customers! Engaging with your audience lets them know that you care about their experience (which inclines them to come back) and helps you discover if your business is actually serving your customers’ needs. Ask questions often. Respond to complaints quickly and show your audience that you are listening.
Remember: all feedback is good feedback, even if the feedback is bad! So, start asking for it.
And that’s it!
You can start a successful business even with competition. Just follow the formula. Identify who your customers are, find out their needs, wants and pain points and then cater to that. So long as there is a demand out there, there is room for you to supply a great product/service.