Reflections

This post is part of the series on starting a small business.

So far we have talked about getting some ideas together for starting a small business, and about what to do in your first meeting. Now that you have some idea of what you want to do, it’s important to figure out how you are different from what is already out there. What makes what you are bringing to market special? Why should a customer choose your product or service over what someone else already offers, or is planning to offer soon? Thinking about this, or discussing it with your partners, can bring further focus to your offering, and can sometimes prompt a change in strategy.

The statement defining how you are different from everyone else out there, and especially focusing on the value you provide to your customer, is often called the Value Proposition. This often follows from the 3C and 4P analysis standard in marketing (3Cs: Customer, Competitors, Company; 4Ps: Product, Price, Placement, Promotion, to be discussed in more depth in future posts), but is a vital step that can require some thought and further discussion. It can take some time to get to the place where you can focus your product or service on something useful for your customers. Don’t rush! Take some time to discuss it, and then let each partner mull over it for a while before finally landing on something.

Here are some of the questions you are trying to answer in having this discussion with your partners and formulating this statement.

• What makes your product or service better than what’s already available?
• Why would a customer switch to your product or service if they are using those of your competitors?
• If you were “pitching” to an obstinate customer, how would you convince them that they need your product or service?
• What value can you offer that no other company can?

If you really have trouble answering these questions, you may want to reconsider whether you are going to market with the right product or service. Maybe it’s time to adjust the focus of your strategy so you can easily explain how what you are doing is useful to your customers.

Tags: Management, Small Business //