Five Powerful Questions You Need to Know the Answer To Before Going Any Further With Your Business
These are business makers or breakers!
As you progress through your business there will be several questions you will need to ponder, but these are five essential business questions that are game makers and game breakers.
- What Business are you in? You really need to define what business you are in. The more focused this is the easier it is to idealize your message to your customer. Create you elevator pitch. This is a simple one or two line description of what exactly your business is about.
- Who is your ideal customer? Get an ideal picture of who your target customer is … get detailed. Many give their ideal avatar a name like Bob and make a profile of every last detail about him. This will help when creating your sales message. You will be talking directly to your “Bob”.
- What is the life time value of your customer? How much value do you place on your current customers? More often than not it is much less expensive to maintain and sell more products or services to current customers than it is to acquire new customers. Put an actual number value on current customers. Take your customer list and figure the amount each customer spends with you on an average per year.
- Do you have a maximum capacity to you business? There may reach a point where the cost of growth within you business may exceed the number of new customers coming in. This may seem difficult to imagine, but in some cases the cost of properly servicing new customers may outweigh the profit off of each customer. This is essentially what needs to be considered as your business grows to still maintain profitability. Growth comes at a cost and it needs to be weighed against profits.
- What is the risk level you are willing to take in you business? You not only need a great product, but you need to make you offer compelling in competitive markets … how competitive are you willing to be? In very competitive markets sometimes you need to make a better offer just to stay in the game. Better financing … Money back Guarantee … better quality … more marketing risks are all things that can make you stand out from the crowd, but you really need to assess you tolerance for the risk.
Mull these over and really dig deep when answering these questions. These are also an ongoing process of evaluation. Keep these in the back of your mind and keep changing your answers as your business and the market you are in changes.