SCORE provides free mentoring to hundreds of business owners in Southern Arizona every year. If you are starting a business, here are a few tips to consider:
You must understand the purpose of your business. Ask yourself, βWhy does my business exist; what is the purpose of my businessβ?
The purpose is not to make money, it is much deeper than that. Most business owners know what they do and how they do it, but very few of them know βwhyβ they do it. Learn to communicate your purpose to potential clients. Those who share your passion will become long-term loyal clientele.
It is critically important to work with a coach or a mentor. The guidance they provide will help you avoid many mistakes. Working with a good mentor will allow you to grow a much stronger business in less time.
A common mistake involves the marketing plan. Most business owners target several broad market segments that are saturated with competition.
Spend some time identifying the right target markets for your business. Break them down into narrowly defined niche markets. For example, most Realtors try to market to anyone who wants to buy or sell a home. No Realtor has the marketing budget or the resources to effectively target this market β there are simply too many customers and too much competition. A more clearly defined niche market would be βclients who are going through a divorce and need to buy or sell a home.β
Finally, another common mistake has to do with pricing. Too many businesses lower their prices to generate business. You will never be successful trying to be the low-price leader in your industry. There are several different methods you can use, including cost-based, demand-based and competitive-based pricing models. Ask your mentor to teach you how to set your pricing appropriately for the market you are in.
