By Jay Thompson
How to successfully start a small business
Business Bitz
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For years it has been said that a small business is just a smaller version of a big business. We now know this is not completely true. Though there are some similarities, there are many more differences between the two.
As an entrepreneur it is all up to you. In the beginning, everything rises and falls upon your actions and quite often this occurs on a daily basis. As time goes on you will gain strength and stability. You will build your team or network and things will eventually start to even out and become predictable. With that being said, how can you quickly build a stable, enduring business that will provide you with the lifestyle you desire? Hard work, dedication and a win-win never quit attitude are imperatives, but without a plan it is going to be difficult to succeed.
Getting your ideas on paper so you can touch them, feel them, and share them with others is one of the key factors for success. So how do you do this? Do you need a business plan? Well, eventually yes, but for now there is a great tool to help you get started. It is called “The Business Model Canvas Template.” The template was designed by Alexander Osterwalder and championed by Steve Blank of Stanford University. For any investor or lender to take an interest in your business, you will need to be able to answer their questions about your business, and by effectively doing so you, will be on your way to achieving success.
What they really want to know is “how will you produce, deliver, and market your product or service, and how will you make money?” Do you have the answers? If so, great! If not, let’s complete your business model canvas and figure them out.
In premise, business is very simple. You find a dramatic need, then you fill that need, and you will be successful. It is that simple, but it isn’t that easy. Here are nine things you need to answer to create your canvas.
1. Problem. What need does your product or service fill? What problem does it solve?
2. Customer/Client. Who is your ideal client? What is the market size, market share, potential, etc. and who are the early adopters?
3. Value Proposition. What is your unique value proposition? What is your single clear message that creates interested prospects? What benefits are you promising your new client?
4. Solution. What is your outlined solution for your client’s problem?
5. Channels. How do you get your product to market?
6. Revenue streams. What are your sources of revenue? Products, services, etc.?
7. Cost Structure. What is your pricing strategy? What are your costs fixed and variable?
8. Key Metrics. What are the key numbers of your business? How do you measure, record and plan to improve over time?
9. Unfair Advantage. What separates you and makes you better than your competition? What is your niche?
Now that you have these answers you are not done but ready to get started by going out into the field and talking to prospective clients. Ask what they want and how they like your ideas. Analyze their input and see how it relates to what you thought they would want. Make the necessary adjustments and then do it again. Once you have refined it to the point that both you and your prospects think it makes sense, then, you are ready to get started!
Jay Thompson is a Business Consultant with the CSU Bakersfield Small Business Development Center. The CSUB SBDC provides premium, one on one, no cost consulting to small business owners in Kern, Inyo and Mono Counties. For more information visit their website at http://www.csub.edu/sbdc.
