Ask These Questions To Define Your Business
Step 1 - Define It
When management-types ask about a business model - like for example, "So what is your business model?" - they really want an answer to a much more direct and basic question: "How are you planning to make money?"
7 Questions To Define Your Business
- What product/service are you providing?
- What need are you meeting or problems are you solving for your customers?
- How is your product/service different from those of others who are selling the same thing, something similar or an alternative?
- Who is the customer?
- What is your value proposition?
- What is the revenue model?
- How will your products/services be distributed?
Most start up and existing business owners struggle to answer all of them without first having a determined and extended deep-thought session. But your ability to answer these questions is what is necessary to launch a successful business.
Most often prospective start up owners are told to create their business plan as the first step. This is often a fatal mistake, or at least one that delays the process by ending up as an academic exercise.
By asking the right question, you as the business owner can drill down to the core of what your business is all about. In turn, when creating a business plan - you are now armed with real answers that will drive what you do, when you do it and how you do it.
Very often for example, we consult with people who have great ideas, but when put to the test, using the above 7 questions, it becomes apparent that the product fails to meet a need in the marketplace; or the it is redundant.
We have worked with hundreds of prospects that spent lots of money developing a product only to find out later that a similar product was already in the market and that their revenue model would not work. What a waste.
Before you commit time and money, ask the hard questions. The answers will reveal whether or not your idea or concept is viable.
To learn more about the "Define It" process and the other 4 steps in 5 Step Business Start™, << click here.