Three questions all small business people need to ask themselves

Three questions all small business people need to ask themselves:

1. What do I sell?

Small personal service businesses need to understand what it is they are selling and who their prospective clients are. If you can’t tell me what you do and why it is important in 25 words or less you probably don’t know. 

In college one of my professors told the class that everyone in the class would have an idea that could make them rich at some point in their lives. He also said, most in the class would not take advantage of these ideas for one reason or another, but of those who tried to make their idea happen, the biggest roadblock would be not knowing what they were offering, and why it is important. Once you know this you can target those who can benefit from what you do. 

As a one-man operation, I have had to relearn this lesson from my college days. No one-man business can address the needs of an entire market. But you can find your niche and address the needs of a small market looking for what you do. First you must define what you do, and understand why it is of benefit. Then you need to define your benefit statement, and make sure it matches what you offer. 

When I left the corporate world with a little push from my employer, I decided I would sell real estate. I found there is roughly one real estate agent for every 100 people in Western Washington. Not every 100 homes, but people. All real estate agents do the same things and in the same way. Yes, some are with big companies and have fancy offices and some are with smaller companies and some work from home, but what they do is the same. 

The above is true for many occupations: accountant/bookkeepers, interior decorators, personal trainers, and many other personal service professionals. How do you differentiate yourself from all the others and gain clients? This is especially an issue for a startup business without happy clients who will refer others to you. 

In my case, I decided I could offer full real estate services for less by reducing my business expenses and still make money. I focused on the essential services required to be a full service professional and eliminated all the other overhead. I then realized that the majority of potential clients would not use me for a number of reasons inherent in the real estate business, these are often referred to as the FF&R group of clients. This means clients who use an agent based on family, friends and or personal referrals. These potential clients never look for an agent. Even if I could get their attention, it is very hard to overcome family or close friends and I don’t really want that pressure. This same factor exists in every small business environment, and must be taken into consideration when implementing a plan for success.

It took me about 18 months to truly understand who my ideal client is. I now know after a 5-minute conversation if the potential client will use me to either buy of sell a property. I know because I know exactly what I do, why it is valuable and who values what I do enough to be my client.

So before you write your business plan, make up your operating budget and begin to develop your marketing plan, be sure to ask yourself these three questions and make sure the answer makes sense.

Having done the above, I can now in 5 minutes recommend that a potential client call another agent or work with me. I don’t waste my time or theirs. I can also give my benefit statement to more people, and with a high degree of confidence can respond with: “You’re my guy. Lets get this process going.”

Good luck, and as we say in sales – good hunting.