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The manic rush to form an Internet business is abating, and despite our strong economy, forming your own business may not be smooth cruising down Easy Street. Many smart investors are examining startups even more cautiously than before. The boom times WILL end sometime, as they always have. Is your business prepared for such a shift? Can your business make it without investors? What if customers don't beat a path to your door? This installment will deal with some marketing issues, one of the most important matters in a successful venture. A product that "sells itself" is so rare, you should consider yours WON'T be one. Even if it was, you'd probably have so many competitors, you'd have a devil of a time standing out. Have you done detailed market analyses? Will your product or service serve an emerging or existing market in which demand exceeds supply? Will it be competitive? How do you KNOW your product or service is a guaranteed winner, with location, distribution, pricing and so forth?
Market research is the first step in building a successful product. Far too many business people and engineers come up with a product first, then try to figure out how to sell it. Or they try to build an ideal product, with every conceivable feature, when the true demand isn't even known. Apple's Newton was the first good palm computer, and it had the opposite problem. It could have succeeded, but Apple didn't realize it was only a tech toy without the functionality that the public demanded. It actually did well in limited, vertical markets, but failed to capture the consumer market. Palm Pilot brought out its computer with several applications the public really wanted, and it's dominating the marketplace. New features are added, and demand is growing. Just because a few people SAY they want your product or service doesn't mean that they WILL shell out money for it. Make sure that people will spend money for something no one else has thought of, and offer them what they can't live without! Can you communicate your opportunity to others, irresistibly and succinctly? I've observed many MBAs and other talented entrepreneurs kill off their audience by being boring, vague, and not addressing the prospect's top concerns. Do you think most other business people are better? When you tell others about your business (or business idea), how long does it take you to tell them? Do they "get" it? Are they excited? Have you tried your ideas out on savvy business people? How about a representative audience? As good as you think your product or service is, find out what you can from the REAL world before you commit all your time, money, resources and opportunities to a clunker! Common sales blunders include promoting features YOU think are important, instead of uncovering what benefits the prospect is hot for. Entrepreneurs often excitedly expound on the technical details of their work or idea, and the lay person is left to wonder if the product will provide his basic needs. Some people prattle on indefinitely, and never notice the impact on their audience. Others don't prepare themselves to answer the prospect's concerns. The worst is expecting your proposition to "sell itself." What is your mix of marketing? Does each part fulfill a specific, critical outcome? Does it tie into another kind of marketing, to reinforce your brand recognition, desirability, and accessibility of your product? In this fast-paced global marketplace, are you reevaluating your marketing plan on a regular basis? The successful Internet companies devise and pursue several marketing strategies based on research, EVERY QUARTER! They target small market segments, continue with the one with the best results, and create new strategies for the next three months. They know how to do what works, they pay attention to real-world trends and results, and they do it at hyper-speed. I've worked with expert marketing consultants that didn't have well thought-out plans, and were puzzled that they weren't more successful. If they have done a poor job of planning their marketing, what makes you think your plans can work? Are you just doing what jumps to mind, or what you've done before, or what's convenient?
Many large businesses today have been slow at taking advantage of new paradigms, and are suffering because of it: Amazon.com has stolen much market share from the big bookstore chains, and they're trying to play catch-up on the Net. Missing an opportunity can be expensive, perhaps costing you your business. About 100 years ago, when horseless carriages were grabbing attention, the Cincinnati Buggy Whip Company had a choice to join the new industry, and manufacture something new. They decided it was only a fad, and wouldn't take part in it. They committed themselves to being the best buggy whip maker there was. Perhaps they succeeded, but they aren't around today. On the other hand, many auto parts manufacturers have done quite well. Not every idea or trend is worth pursuing, but it's worth knowing if the ones you choose have "legs". You're betting your future on it! Do you think your business and circumstances are SO unique that no one else could possibly understand? Do you think you're so brilliant that no one else could possibly offer you something better than what you have? We've encountered hundreds of business people who thought they were the Lone Ranger. They were also usually the ones who were stuck, working far too hard for meager returns. It takes confidence to build a great business, but confidence isn't foolish! Most small businesses, the majority of startups, and even big corporations find themselves lulled into misplaced confidence about their endeavors. Those that are diligent, thorough, adaptable, learning, risking thoughtfully and so on are the ones that do well. Which are you? Which do you want to be? Marketing is an enormous subject that can't be adequately addressed in a few hundred words, or a few questions. I want to make you stop and consider whether you've done your best to mitigate failure and insure your success. If you spend 15 minutes reading and considering these four articles, and come away with only ONE question that gives you an advantage, then it was valuable for you. Our website has a variety of resources, articles and tools for you, in such areas as marketing, sales, customer service, management, and other business issues. There are other good resources on the Net, as well as in your community: the library, business groups like the Chamber of Commerce, consultants of every type. Be bold, act quickly, but be smart! (Go back to Part 1 of this article.) (Go back to Part 2 of this article.) (Go back to Part 3 of this article.)
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"Discovery consists of seeing what everybody has seen and
thinking what nobody has thought." -- Albert
Szent-Györgyi