SCORE provides free mentoring to hundreds of business owners in Southern Arizona every year. Many of those business owners are just starting a new business. Here are some of SCOREโs tips to consider before you open a new business:
1. Understand exactly why you are starting the business, and what your motivation is. Understanding your โwhyโ will help carry you through the challenging times.
2. Be passionate about what you do and build your business around your clientsโ needs. Donโt do it for the money; the money will come.
3. Work with a coach or a mentor to give you advice along the way. Without guidance, you may make mistakes that could have been avoided.
4. Be prepared to make adjustments and changes along the way, but never give up. A longterm commitment is a key ingredient for success.
5. Have systems in place to measure marketing results before you open your business. It is important to know what is working and what is not, especially early on.
6. Know your competition, and do a thorough competitive market analysis. You must know who your competition is, and what they offer. What gaps exist in your industry that might allow you to create your niche in the market?
7. Spend some time identifying the right target markets for you and your business. Be specific and focus on just a couple of them. Most new business owners try to market to too many potential clients. Pick a small niche market and own it.
8. If you are considering opening your business with a partner, be very careful in who you align yourself with. Since most partnerships fail, be sure you have a well-written partnership agreement.
9. Price your product or service appropriately for the market. Most new businesses set their pricing too low and it disrupts the marketplace. You will never be successful trying to be the low price leader in your industry.
