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'; Never Start a Business Without Answering These Questions | Plan B Sucks!

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Never Start a Business Without Answering These Questions

Posted by admin on May 26, 2011 in Put A Price On It |

1. What compelling reason exists for people to give you money? You have to have a value add to your consumer. If I don’t think your product will leave me better off than without it, I’m not buying it.

2. How do you acquire what you’re selling for less than it costs to sell it? Most of the time there is some type of laboring that adds value to your cost to allow you to sell it for more than what you paid for it. If it is not labor, figure out what this is in your situation so you can have a profit margin.

3. What structural insulation do you have from relentless commoditization and price wars? A patent is always the best thing. This way no one else can produce your goods but yourself. Other times it’s location. Why is it popcorn is way more expensive in the movie theater or alcohol in a restaurant? Because they are the only sellers!

4. How will strangers find out about the business and decide to become customers? Advertise (to who), advertise (where), advertise (how). To teenagers in the downtown book store on magazines. To adults at work through email. To kids watching TV through commercials. To students online through social media. I don’t care if you have to walk door to door in every neighborhood in every city, do whatever it takes!

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