Finding a Profitable Business

If you’re looking to start a business, make sure you understand these core concepts!

Many people starting up in Tenerife don’t have previous business experience, which makes it very important you have a plan to follow when you’re planning your business. Today we’ll cover some core ideas for how to check whether your business concept is a good one or not.

A businessman once asked two guys: “If you were to start a new restaurant, and you could have the ultimate advantage over the rest of your competitors, what would you choose?”

One said “Location” – if I have the right location, people will see me and buy my food.

The other said “People” – if there’s a lot of people around they’ll buy my food.

They were both wrong.

The business person answered: “A STARVING CROWD“. Nobody will come into your restaurant if you’re in the right location but they aren’t hungry.

And no matter how many people are around, if they aren’t hungry they won’t come inside.

You’ll only get customers in the restaurant if you have a STARVING CROWD.

And it’s the same for your business – YOUR first step is to find a STARVING crowd!

If you don’t have a crowd starving for your product or service, you’ll find it very difficult to sell. Try selling Nike trainers in a remote village in Africa. Or ice cream in Antarctica. Catch my drift?

So how do you find out if you have a starving crowd for your product or service?

Obviously you’ll need an idea of what you want to do first, but invest a bit of time before you invest money:

– Study the market – do your research on the Internet, visit the local area, read newspapers, speak to people.

– Discover where your prospect’s pain is and how you can solve it. What are their problems? How can you solve them? How does your solution, product or service differ from your would-be competitors?

– List all characteristics of the kind of clients you want. See if they match the target market you have identified. If not, move on… For instance, if you want easy to handle wealthy clients, and you discover the main clients for your intended product or service are people with little money who wants a bargain, then it’s the wrong business for you.

– Never, ever go into a market just because you believe your prospects have money to spend. If you can’t solve their problems they won’t spend any of it. Don’t try to sell something people need – make sure they want it too!

– ALWAYS sell the cure, not the prevention. People will pay MUCH more for something that instantly solves their current problem than they ever will for something that might prevent a problem in the future. Why do so many people smoke when it causes cancer…? Because nobody is interested in prevention!

– Stay independent and critical – you are NOT married to the market. If the market changes, move on! Fortunes have been lost by being too attached to the business and original idea.

– How will you find your customers? Where do they go? What do they read? How will you attract their attention?

– How can you convince them to buy your product or service? What do you offer that is different to everyone else?

Your Unique Selling Proposition – USP – tells your customers WHY they should do business with YOU. What separates you from your competition?

It’s the one unique, attractive selling advantage that YOU are best suited to deliver.

Here are some samples of potential USP’s:

– You sell your product/service for less.

– You sell a higher quality product/service than everybody else so you may charge more.

– You provide more customer service before, during and after the sale than anyone else, at the same or better prices.

– You offer a much better guarantee, protection or warranty than your closest competitors.

– You offer more exceptional value by including bonus products/services/premiums/gifts than anyone else.

– You service a specific age group, industry, type of person, niche etc.

Make sure the USP you offer is something your market WANTS, not something YOU want them to want!

If you want help to start to find the right business for you, call Jennie on 902 789 660 now!

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