Do
What You LOVE: If you've chosen your business because
you read that this niche was the next hot one, or because your favorite
uncle (or your best friend) thinks you'd be well-suited for this
business, you may as well pack up now and save yourself some time and
money. If you don't love what you do, it will show...potential
customers will know it and will go elsewhere. Is it possible to be
successful anyway? Sure -- but it won't be easy and it won't be
fun...and isn't that why you want to be in business for yourself anyway?
Instead, choose what you love. You'll know what that is when you find
yourself being incredibly productive, forgetting the time passing by,
and not being able to wait to get up in the morning to do more! At
Solo-E we call that being juiced...but whether you call it being in the
flow, or the zone, or whatever, FIND IT!
WRITE
DOWN Your Business Plan: As a small or solo
business owner, you still need a business plan. Even if you aren't
getting a loan! Would you invest thousands of dollars of your
own money buying stock in a company that didn't have a written
prospectus? (I hope not!) Then why would you spend thousands
of dollars AND hours of your precious time on a business that doesn't
have a written plan?
Write your plan, get it critiqued by professionals, and most important,
BE READY TO CHANGE IT. This may seem counterintuitive...why bother
writing it down if it's just going to change? Because writing it down
makes it more clear...and helps you get to the next stage of learning
and planning and revising. It's critical--67% of businesses that failed
had no written business plan. Want to play the odds?
Multiply
Your Expected Startup Costs by Two--or Maybe Three: When
I started my business, an honors MBA grad with 15 years of solid
business experience behind me, I figured I was smart enough to
estimate my startup costs accurately. I knew all the things I needed
and made conservative estimates and I was still WRONG! That's
right, I was still off by a factor of almost three. Don't make this
mistake! One of the biggest reasons small businesses fail is because of
lack of capital. Give yourself the best possible start by saving or
acquiring sufficient startup funds NOW. Before you start!
Make
Your Market Niche as Small as Possible: Again,
this is counterintuitive--shouldn't you try to appeal to as many people
as possible? The paradox is that the more you try to appeal to
EVERYONE, the less you will appeal to ANYONE. Let's say you are selling
your house...would you rather list it with the agent who operates in 14
counties, sells both commercial and residential real estate, and sells
everything from cottages to estates? Or would you pick the agent who
specializes in your community, selling only houses in a well-defined
price range that she knows extremely well? Ruthlessly define your
niche, make it as small as possible, and stay true to it. You'll thank
me later!
Do
Marketing Your Way: The temptation is to choose all the
marketing methods that the competition uses. To stay with
tried-and-true marketing channels. To place advertisements that you
know nothing about creating, or make cold calls that give you
heartburn. Why? Because (all together now) "that's how it's always been
done."
It's difficult to stand out among your competitors when you are doing
the same kind of marketing! So instead, look to your strengths. What do
you like to do? What are you good at? Then choose three marketing
methods that play to those strengths. If you need ideas, check out 136
Ways to Market Your Solo Business.
Remember
the Most Important Ingredient in Your Business--YOU:
Business-owner: know thyself. Spend some time learning about who you
are and how you are unique. Then let that uniqueness shine through in
your marketing, in how you run your business, in everything you do.
Don't hide your quirks--celebrate them!
Customers go to small and solo businesses primarily because they are
looking for a personalized experience. They want a relationship with
you as the owner of your business. If you try to come off as who you
think they want, they'll smell right through that and not come back. Be
who you are, and trust that who YOU are is going to
be attractive to the right people.
Build
Your Business by Building Relationships: Being a small
or solo business owner isn't about sitting in the corner alone.
Actually it can be--and that isolation is what drives many out of
business and back into a "job". Build relationships to survive! Start
with your colleagues--others you know who are at the same stage of
business as you, or are farther along and willing to mentor
you.
Next, build relationships with potential customers. Ask them what they
want! Then create products and services based on their input and come
back and show them what you have done. Get feedback, tweak, and maybe
make your first sale. Stay in touch with your customers even after they
leave you.
Last but not least, build relationships with your competitors. You
might be able to do this right at the beginning, simply by asking them
for their advice. Surprisingly, many ARE willing to share their secrets
if you just ask. Later on, build cross-referral relationships,
co-marketing alliances, and other relationships that are win-win for
you, your competitors, and your customers.
Don't
Accept a Customer Just For the Money: This is probably
the hardest advice for new business owners to apply. Especially when
there is a job, a project, a potential client, just outside your niche,
that could keep your business solvent for the next six months. Don't do
it! Taking on a client outside your niche inevitably results in
frustration for you, dissatisfaction on the part of the client, and in
the end, usually costs you more than you make. Ask any successful
business owner and they'll tell you this is true!
Don't
Do Everything Yourself: It's so tempting to fall into
the self-deception that "it's cheaper for me to do it myself." IT"S
NOT! If you aren't good at something, for instance bookkeeping, it will
probably take you 2-3 times as long--time you could be spending doing
things that are essential for you to be doing personally, like writing
your business plan or deciding your marketing strategy. Put sufficient
capital into your business up front so you CAN hire help right from the
start. Your business will get off to a quicker start because you aren't
distracted by time-consuming tasks that drain your energy.
