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 the five essential business questions that are game makers and game breakers.
- What Business are you in? You 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 your elevator pitch. An elevator pitch is a simple one or two line description of what exactly your business does.
- Who is your ideal customer? Get a perfect picture of who your target customer is and get detailed. Many give their perfect customer a name like Bob and make a profile of every last detail about him. Having an avatar will help when creating your sales message. You will be talking directly to your “Bob.”
- What is the lifetime 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 existing 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 for your business? There may reach a point where the cost of growth within your company may exceed the number of new customers. Scalability may seem difficult to imagine, but in some cases, the cost of servicing new customers may outweigh the profit off of each. Some business models aren’t scaleable in their current state. Growth comes at a price, and you need to weigh it against gains.
- What is the risk level you are willing to take in your business? You not only need a great product, but you need to make your 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 need to assess your tolerance for the risk. I’m working on a new innovative product and when it’s complete, I’ll just Call My Friends at InventHelp! to setup a new business.
Mull these over and 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.