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A common hazard faced by new
entrepreneurs is a lack of faith in the power of their
offer. Many business people lose focus because they are
worried they wont generate enough cash flow from their
core product. They attract potential customers with
outstanding expertise but then muddy the water by trying
to sell anything those customers want, regardless of how
it fits into their business plan. This is confusing, both
for the customer, who doesnt really know what type of
business you have, and for yourself. Heres how to stay on
track.
Many business people lose
focus because theyre worried they cant generate enough
cash flow from a small group of products or services. You
attract potential customers with your outstanding
expertise but then muddy the water by offering anything
those customers want, regardless of how it fits into your
business plan. You lose focus. If you dont focus, you wont
have the knowledge you need to help your customer. You
need to solve problems and offer a complete solution. You
can only do that well in your area of expertise.
Losing focus sets you up
for failure. If you cant solve your customers problems,
your business wont earn a reputation as a good resource.
This applies to any type of business. Imagine that you
offer computer accounting services. You are an excellent
accountant; you have a good reputation and an excellent
rapport with your customers. If your customer needs a new
computer, chances are they will ask you if you sell
computers. Lose focus and you may be tempted to say yes.
After all, you know computers... you use them all the time
for your computer accounting business.
However, while you may use
computers in your business, you are not necessarily an
expert in the computer retail business. You may not know
the best wholesalers. Youre not equipped to deal with
repairs. You probably wont make money selling the computer
after you invest all the time necessary to learn how to do
it properly, and the time you invest takes time away from
your already successful business. Whats worse is that a
customer dissatisfied with your service wont tell other
people not to buy a computer from you, shell tell them not
to deal with you at all.
If you lose focus and try
to be all things to all people, you will not be as
successful as you could be in any business. Successful
businesspeople tell you to focus on what you do best.
Master your business and give your customers value. If
your customer comes to you looking for something that is
not part of your core business, refer her to someone else.
In fact, you could even make a deal with another Web site
and have them refer customers to you as well.
Affiliate programs do
exactly that. In the end, you serve your customers better
and they will continue to value your advice, your products
and services. There are ways to offer more products and
services to your customers and increase your cash flow
without losing your focus or diluting your brand. Lets
look at a concrete example.
Marie-Lynn and I were
talking about a new business she wants to set up.
Marie-Lynn is interested in mobile entertainment systems.
In fact, shes looking for a DVD player for her car. She
often travels by car with her husband and daughter,
visiting family in other cities. Her daughter is now old
enough to ask the dreaded question, "Are we there
yet?" She thinks it would be interesting to get a VCR
or DVD player for her car to keep her daughter (and
husband!) quiet and entertained.
Doing some research, she
quickly realized there was a business opportunity here.
Buying a car that has a DVD player included costs about
$10,000 more than average because they tend to be luxury
models. Thats a bit expensive for a DVD player! She looked
for places that sell kits for DVD players, much like the
kits you can get for car stereos. She found there were
very few stores that would add a DVD player to a car, and
she couldnt find any "do-it-yourself" kits on
the market. She was sure other people were having the same
problem.
As we discussed it, I
agreed this was a perfect business opportunity! I pointed
out that this was a high-priced, high-margin product with
relatively low shipping costs. We base our business
strategy on establishing relationships with our customers
and we can do that best with fewer customers. After all,
were not trying to be a Wal-Mart or a Dollar Store.
It had the advantage of
being a product that requiring a good deal of expertise.
Which DVD player is best? Which models fit in which
vehicles? There was even potential for information
products like plans for customizing older vehicles to
accept a DVD player.
Imagine the long-term
potential for offering DVD movies that play well to a
traveling audience. Marie-Lynn will be able to warn her
customers about movies with car crashes and high-speed
chases that may give the driver a nervous breakdown, and
she can recommend movies that keep her own daughter
occupied. Moreover, whom do you think her customers will
come back to when they change vehicles? As we talked, we
both became excited about the possibilities.
I was convinced "DVD
Players for Your Car" could be a perfect application
of the Ride the Wave philosophy. Then Marie-Lynn also told
me her research showed her that mobile and wireless
networking products were selling well now. Everyone wants
an always-on Internet connection, and more and more people
have multiple computers in their house that they want to
network without drilling holes and running wires.
She was thinking about
starting a business selling mobile and wireless networking
technology and she would include the "DVD Players for
Your Car" business with it. After all, there isnt any
type of device more mobile than a car, is there? She was
worried she might not sell enough car DVD players to make
a profit and mobile networking was a high-end market and
there werent many people doing it. She was also worried
that she might not have the expertise people were looking
for when it came to DVD players... after all, she didnt
even have one in her car yet. She was still shopping!
Theres a good chance many
of you will have the same experience, though not
necessarily with DVD players and mobile networking
products. You will have doubts about your idea and doubts
about your expertise. You will worry that you wont make
enough sales of one product and youll be tempted to add
other products to your online store. Ill tell you the same
thing I told Marie- Lynn.
Dont lose focus! The
"DVD Player for Your Car" idea is excellent. It
would only get lost in a "Mobile and Wireless
Networking" Web site.
Remember: Your brand, your
business name and its reputation, is your most valuable
asset. Your must build and protect your brand over
anything else. Your brand will be the true secret of your
success and the source of the long-term security of your
business and your income. Think of your brand as your
position in the hearts and minds of your customers. Where
are you in the hearts and minds of your customers?
Remember your business strategy and you have every chance
of success. Its easy to get distracted and lose your
focus. Stay on track!
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About
The Author
Feel
free to reprint this article on your Web
site or in your electronic or printed
publication. If you wish to edit the
article for length or style, please
contact me prior to publishing. When
publishing the article, simply include the
short "about the author" by-line
as shown.
Duane
Gordon is a personal e-Business Coach and
Author of "RIDE THE WAVE, How to
Succeed in the Next e-Business Wave"
Learn to turn your passion into a
successful Internet business. http://www.ridethewaveonline.com/default.asp?a=1223&t=0022WSAR4A10001&d=surfsup/ |
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