When you are starting your own home business, you definitely feel different, unique, especially if most of your friends work at an office. You are sure that you will organize your business better than anybody else in the world and that your business will be the most successful business ever. Otherwise why should you start it? Anyhow, you should realize that there are hundreds of other people starting similar home business at the same moment, and there are thousands already operating in your area of business. Chances are, some of them are even more professional and energetic than you. Therefore, as soon as you start working, you will face tough competition, unless your business is groundbreaking, which as you understand is quite a rare case. So, it is not only about performing well. You have to define why your business is better than any other business and build a strategy of using your advantages that will lead your business to real success.
You have to ask yourself, " What are my strong sides? What advantages does my business have? Why could my business be better than any other business?" You have to have "a unique proposition," unless your business will have no room to grow, and you will be lost in a long line of other "good" businesses. You can also use this strategy, if you are already working but want to improve your performance.
So how do you define what kind of unique proposition that you have? Divide all that you can think of into groups, and if you find out that you do not have a "unique proposition", work on developing using the following strategies:
Think how professional you are in the area of your business. Do you have an extra-good education or long experience of the subject? If yes, you can make this your strong side and write about it in all commercial materials. If you feel that it could be your strong side if only you attended a course in a certain subject or educate yourself on some issues that you feel you know less about than others, and it will not take too much time - do it.
You are well known in your business community. For example, you are a Psychotherapist with a long successful work experience and want to work at home. You must build your client database using word of mouth promotion.
You are very productive. Then, your main advantage might be the speed with which you can accomplish a project. If the quality of your work will be as high as the quality of work of your competitors, clients will rather go to you. It's a well-known fact that all clients want their work to be done as urgently as possible no matter in what business they are.
Speed is not your main advantage, but you strive for excellence. Great. Your clients will know that they have to wait patiently until the work is done, but their translations (if you are a home-based book translator) would not be done better.
The same with price. If the price for your goods or services is the lowest in town, because of any reasons, it's a very strong point. But, you have to earn profit, so if you feel that competing in price with bigger companies will only be possible if you expend a lot (marketing, giveaways, etc.), do not try to compete. Instead say: "Yes, our prices are high. But, for this price you will get..." If you manage to position yourself, clients will perceive your services or goods to be extra-class and will pay more for them. This is exactly why people are willing to pay three times more for a dress from DKNY, than for exactly the same, unbranded dress.
You feel your strongest point is your ability to communicate with people. Chances are you might provide better service to your customers than anybody else. You always know how to speak with clients, you can ease any tough situation with a nice and appropriate joke, and you are always in a good mood. People will work with you because they like you. Therefore, not only work hard on projects but try to stay in touch with your client during your work on his project.
You plan to enter the market with several goods or services but only one of them is really unique. Let this product be your main feature. It is highly probable that your client will use other services from you once he finds that your first service was so great. It will be easier to them to work with one person handling several jobs, than to look for several people/companies for different tasks.
And finally, you may be afraid that because you are a small business, it will be difficult for you to compete with big boys. Make it your advantage. Make your client understand that his project will be the matter of higher importance for you than for a big company. For example, if your client goes to a huge advertising agency, he will only talk with one of the managers. With you, he will speak with the director who will personally handle all tasks for him. And it does not matter that the director is the only person in the company for now. Remember that all companies were a small company once it just opened.
You have to ask yourself, " What are my strong sides? What advantages does my business have? Why could my business be better than any other business?" You have to have "a unique proposition," unless your business will have no room to grow, and you will be lost in a long line of other "good" businesses. You can also use this strategy, if you are already working but want to improve your performance.
So how do you define what kind of unique proposition that you have? Divide all that you can think of into groups, and if you find out that you do not have a "unique proposition", work on developing using the following strategies:
Think how professional you are in the area of your business. Do you have an extra-good education or long experience of the subject? If yes, you can make this your strong side and write about it in all commercial materials. If you feel that it could be your strong side if only you attended a course in a certain subject or educate yourself on some issues that you feel you know less about than others, and it will not take too much time - do it.
You are well known in your business community. For example, you are a Psychotherapist with a long successful work experience and want to work at home. You must build your client database using word of mouth promotion.
You are very productive. Then, your main advantage might be the speed with which you can accomplish a project. If the quality of your work will be as high as the quality of work of your competitors, clients will rather go to you. It's a well-known fact that all clients want their work to be done as urgently as possible no matter in what business they are.
Speed is not your main advantage, but you strive for excellence. Great. Your clients will know that they have to wait patiently until the work is done, but their translations (if you are a home-based book translator) would not be done better.
The same with price. If the price for your goods or services is the lowest in town, because of any reasons, it's a very strong point. But, you have to earn profit, so if you feel that competing in price with bigger companies will only be possible if you expend a lot (marketing, giveaways, etc.), do not try to compete. Instead say: "Yes, our prices are high. But, for this price you will get..." If you manage to position yourself, clients will perceive your services or goods to be extra-class and will pay more for them. This is exactly why people are willing to pay three times more for a dress from DKNY, than for exactly the same, unbranded dress.
You feel your strongest point is your ability to communicate with people. Chances are you might provide better service to your customers than anybody else. You always know how to speak with clients, you can ease any tough situation with a nice and appropriate joke, and you are always in a good mood. People will work with you because they like you. Therefore, not only work hard on projects but try to stay in touch with your client during your work on his project.
You plan to enter the market with several goods or services but only one of them is really unique. Let this product be your main feature. It is highly probable that your client will use other services from you once he finds that your first service was so great. It will be easier to them to work with one person handling several jobs, than to look for several people/companies for different tasks.
And finally, you may be afraid that because you are a small business, it will be difficult for you to compete with big boys. Make it your advantage. Make your client understand that his project will be the matter of higher importance for you than for a big company. For example, if your client goes to a huge advertising agency, he will only talk with one of the managers. With you, he will speak with the director who will personally handle all tasks for him. And it does not matter that the director is the only person in the company for now. Remember that all companies were a small company once it just opened.
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