Given a choice, most people will love to own their own business. However, as appealing and exciting starting a business, it is equally risky and full of mines fields which if not properly navigated, could lead to disappointments and regrets.
In this article, we have explained five of the most important things you must know as an entrepreneur:
- Your business needs to solve a problem
Every business that wants to succeed has to either solve a problem or create a better solution to an already existing solution to a particular problem. Individuals will search for a better and quicker option to solve their daily tasks or need.
Generally, it is advisable to venture into a business that meets a need rather than a want. This is because; humans MUST satisfy their needs as against their wants that are naturally lower in their scale of preference.
Of course, we are not saying you cannot build a business around “wants”. You can but you have a higher chance of business success if your business meets a pressing need
- Identify your target audience
Identifying your target audience helps you to sell your product to the right people that need your product. Some businesses in Nigeria have failed because of the failure to identify the right target audience.
When it comes to your customers, keep in mind the importance of target marketing. The reason this is important is that only a proportion of the population is likely to purchase any product or services. By taking time to pitch your sales and marketing efforts to the correct niche market you will be more productive and you will be more productive and you will not waste your effort or time.
- State your vision / Mission statement
A vision is a distinctive mental picture of what you need your business to be sooner or later, in view of your objectives and desires. Having a vision will give your business a reasonable concentration, and can stop you are heading in the wrong direction or not progressing as you should.
A vision in most cases is always in written form to improve the business focus, the vision statement acts as the aspiration statement of the company for the next 20, 40…or more years.
A mission statement is a short written message of a business company motivation, recognizing the extent of its operations in relation to the type of service or product rendered to clients.
The sole purpose of a mission statement is to serve as a company’s goal/agenda; it outlines clearly what the goal of the company is.
- Identify your unique value proposition
UVP is a clear statement that describes the benefit of your business offerings, how you solve your customer’s needs and what distinguishes you from the competition. Every business must have their unique value proposition.
UVP emphasizes what makes your business better than other competitors and what you can offer them that they will not get from your competitors.
According to Forbes
A significant part of defining a value proposition involves the 4Us. If you find yourself answering a definitive yes to the majority of these questions, then you are on the right path toward a compelling value proposition. If not, consider re-evaluating and revising your new venture.
- Is the problem Unworkable? Does your solution fix a broken business process where there are real, measurable consequences to inaction? Will someone get fired if the issue is not addressed? *If the answer is yes – then that person will likely be your internal champion.
- Is fixing the problem Unavoidable? Is it driven by a mandate with implications associated with governance or regulatory control? For example, is it driven by a fundamental requirement for accounting or compliance? *If the answer is yes – then that group will likely be a champion.
- Is the problem Urgent? Is it one of the top few priorities for a company? In selling to enterprises, you’ll find it hard to command the attention and resources to get a deal done if you fall below this line. *If the answer is yes – then you know you’ll have the attention of the c-suite.
- Is the problem Underserved? Is there a conspicuous absence of valid solutions to the problem you’re looking to solve? Focus on the whitespace in a market or segment. *If the answer is yes – then you know the market is primed for the solution.
- Research/market survey
We all know it is impossible to sell products or services that customers do not want. Learning what customers want, and how to present it attractively, drive the need for market research. Market research can give you a profound understanding of your marketing. Market research focuses and organizes marketing information. It ensures that such information is timely and permits you to:
- Reduce business risk
- Spot current and upcoming problems in the current market
- Identify sales opportunities
- Develop plans of action