TIP # 25 – THINKING OF GOING INTO BUSINESS? – PART 2

This TIP is provided by Joe Chimera, founder of Your Network 4 Success. Our mission is to help businesses and people g r O WAND Pro$per!

CONSIDER THIS: Before you start a business there are many questions you should ask yourself. Some questions are better asked before you make a firm commitment to starting. Some you need to prepare to answer for your spouse, family, friends and bankers, especially if you plan to get financial help. What are these questions?

CAVEAT

SELDOM DO MOST PEOPLE WHO START A BIZ ASK THEMSELVES THE FOLLOWING QUESTIONS.

Our goal is not to dissuade you from starting a business.

Our goal is to challenge you to be prepared.

The purpose of this program is to help you minimize your risks and maximize your potential for success.

How many of you play or played a sport or a musical instrument?

Were you as good at it when you started as you are now? Hopefully, you got more skilled and successful, the more you practiced and played.

Business is a tough non-contact sport.

If you do not plan to feed your brain during the “game,” it is likely you will not succeed.

You must work on your business as well as in your business.

As a starter, below are business questions to ask yourself:

  1. Do you have a long term vision?

  1. Do you have written business goals?

  1. A written business plan?

  1. What is the most important feature(s) of your product or service that will convince potential buyers to switch from their current provider to you?

  1. Am I so convinced of the benefits of my product or service that I can guarantee results?

  1. Do I have a working prototype? Have you tested your prototype in real world conditions?

  1. After telling 10/30 friends about product or service, how many of the bought it?

  1. Do I know the most important characteristics my ideal customers?

  1. Have you identified your ideal customers, by name?

  1. Are you able to provide a graphical display of your brand (slogan, motto, mission statement, etc.).

  1. Are you able to articulate your 2/5 minute elevator pitch?

  1. Are you able to describe the economic value of the products and services? Better yet, are you be able to describe organize your various products and services you provide into Packages (i.e. Product/Service Packages)?

  1. Are you able to describe the added value your Product/Service Packages provide?

  1. Are your marketing activities integrated, so that they create a cost effective, perpetual system designed to produce the following results:

Increase Your Brand Awareness, thus Creating Greater Visibility and Credibility

  • Stimulate Increased Buying Interest and the Generation of More Qualified Leads

  • Produce More Trial/Sales

  • Enhance Your Customer Retention Ratio

  1. Are you able to describe what your greatest business strength is/are?

  1. Are you able to describe how those strength(s) give you a Competitive Advantage is and how to get the maximum benefit they provide?

  1. Do you know what your gross margin per product or service is? For your Business?

  1. Do you know what your net profit per product or service is? For your Business?

  1. Do you know when it will be time to hire help? Do you have a hiring system?

  1. Do you have team of mentors (attorney, accountant, specialist, experience business professional, etc.)?

  1. Do you have an effective accounting system?

  1. Do you have a system to minimize receivables?

  1. Do you have investors? Investomers?

  1. Are/will some of your suppliers give you credit?

  1. Do you have good credit? Credit Cards?

  1. Do you fill the “C’s” that banks will require in order to lend you money?

  1. Have you considered buying an existing business instead of starting one?

  1. Are you familiar with all of the business terms we have used?

THE “C’s” are:

  • CHARACTER (Considered trustworthy)

  • CASH FLOW (Sufficient to Repay your loan)

  • CAPITAL Required (Personal capital to leverage your loan)

  • CREDIT RATING (High enough to qualify)

  • COLLATERAL (Sufficient enough to back your loan)

  • CIRCUMSTANCES (Good support system)

  • CREATIVITY, ETC…

Your Network 4 Success is pleased to have brought you this business tip. Our goal is to deliver at least one bottom line/profit producing idea you can implement immediately! What is the value of one bottomline idea worth to you? $50? Have we accomplished our goal? Please let us know.

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