You decided to start your own business, but so far you only have one idea in your head. Let’s find out how to turn this idea into an action program.
The company’s strategy is a general master plan. She answers the questions:
What am I going to create? What will my business be? Who am I doing this for? How can I improve the lives of these people? How will I be able to differentiate myself from the competition? What makes my offer unique? What is the potential of my business? What are the threats and opportunities? How will I proceed if the trading conditions change significantly?
What results do I want to achieve in a few years?
Let’s consider the company’s strategy with the example of an online chocolate shop. Suppose you decide to sell candy online. The idea is doomed to success because you think that everyone loves chocolate. Is this so and exactly how can a brilliant idea be realized?
1. Study the market
Before starting a business, you need to understand if it has potential. Study supply and demand.
If a product or service is in demand, the demand for it grows, it makes sense to enter this market.
On the other hand, if there are already many offers in this market and every day there are more, it means that the competition is high. Everyone is working on the edge of profitability, it is difficult to make a profit.
Sales of chocolate and sweets in general practice do not vary from one year to another. At the same time, more and more people are making purchases over the Internet and online sales are growing at a dizzying rate. The potential is there.
There are only five specialized online candy stores in your city. This means you can get your share back and the profitability is most likely still acceptable.
But you have many more competitors: they are also pastry shops, gift shops, supermarkets and also private artisans who make sweets to order. To take your place among them, you must offer something new and different.
2. Choose your clients
Among the many potential buyers, you must choose your target audience and focus on it. Don’t try to reach everyone. Find those whose needs or wants are not yet met by current salespeople and focus on them.
Know your potential customer. What need can you satisfy? How do these people think? Where do they buy? What character and behavior traits do they have?
There are many sweet tooths who love chocolate, practically everyone from 1 to 99 years old. Among them, 40% are young and middle-aged people, active Internet users: they value it for the speed and convenience of shopping. Furthermore, the Internet is also commonly used for entertainment.
A separate group can be distinguished among the entire Internet audience. They are people who want to stand out, they like to give unusual gifts, to whose creation they have put their strength and creativity. Let’s say they represent 20% of Internet users. These people will become your target audience.
3. Make a proposal
To differentiate yourself from the competition and better meet the needs of your target audience, formulate a unique selling proposition.
Think about how you can implement it: on your own or with the help of vendors or business partners.
For example, you will cook chocolate according to the unique recipes of your grandmother, who, using natural dyes, makes it colorful and adds unusual ingredients: cloves, sea buckthorn, carrots, red peppers.
At the same time, it will offer its young customers who love creativity and entertainment not only to buy ready-made chocolate but to become a co-author of it – choosing a pattern, color, flavor, and packaging. To do this, you will create a special builder on your website.
In the first stage, suppose you can produce that chocolate yourself, and when order volume increases, you attract a small private factory.
4. Assess the potential
Evaluate the prospects for your development in the market. This method helps to identify the strengths of the internal aspects of the project, weaknesses of the internal sides of the project, potential external market opportunities, and possible external market threats, risks that may affect the development of the company.
By following these tips rigorously, your business will be prosperous and you will be able to face the competition without fear.