Written by: Vanita Lee-Tatum, Executive Contributor
Executive Contributors at Brainz Magazine are handpicked and invited to contribute because of their knowledge and valuable insight within their area of expertise.
You’ve stepped into the new year 2023 with overflowing zeal with a business idea that you are ready to launch! Your entrepreneurial instinct is all set to build an impact-based side hustle because entrepreneurship is rooted in your passion and desire to make a difference in the world around you.
To support your business idea, I’ve developed this guide to start your business on the right foot. Read on!
1 Identify the Problem you are Passionate about Solving
Problems are part of life, and we humans constantly look for solutions. We need better, faster, and more imaginative ways to do our tasks. All super-successful brands have addressed the mass market’s requirements to simplify their day-to-day life. And that is why they are big brands. So, what is the problem you are passionate about solving? What is that one painful problem you want to solve for the masses? What solution can you create to resolve an issue that has traditionally affected your community? Ask these questions of yourself first. As a famous saying goes ‒ “The people closest to the problem are closest to the solution,” you can pick a problem that you’ve experienced or observed closely and how you will be helping people with the solution.
2 Determine what will be the Most Viable Solution
Once you decide on a pain point, it’s time to look for the most viable solution. The more innovative your problem-solving tool is, the more significant the impact of your business will be. How many companies in the market are already addressing the problem you identified? How effectively will your solution solve the problem? These are two significant questions that can help you create an impact-based business.
3 Create a Value Proposition that Separates You from the Competition
A value proposition is a simple statement describing the product or service you promise to deliver to your consumers. It’s the solution statement to the problem you’re addressing. Your value proposition should be clear and compelling, which separates you from the competition. The business world already has many solutions to the problems in human lives. Still, there’s always an opportunity to come up with creative solutions. Writing a compelling value proposition is one of the essential works to do in business planning.
4 Outline and Specify your Competitive Advantage
Your USP (Unique Selling Proposition) determines your competitive advantage. There are three fundamental aspects to building a competitive advantage ‒ Cost Leadership, Differentiation, and Focus. Cost Leadership means you have the lowest cost operation in the industry in your niche. Differentiation means your goods or services are the most unique and are significantly different from your competitors. Focus is your approach to address the needs of the market.
5 Define Your Target Audience
Your business strategy should be specific about customer demographics and ideals. In any business, identifying a target market is one of the most important strategic plans because understanding the needs of your consumers is as important as identifying them.
6 Establish Channels that are Most Effective for Reaching Your Customers
Online and offline marketing are two channels to reach your target customers. You will have to decide which platforms will work best for you based on your business needs and strategy. SEO marketing, social media marketing, email marketing, etc., are the most preferred online marketing channels, where spreading the word through local public events, radio, magazines, etc., are offline channels to reach out to your target customers.
7 Focus on Key Metrics/Activities that Lead to Desired Outcomes
Business key metrics are essential to track your operational performance thoroughly, which helps you devise future strategies. The primary metrics to evaluate your business performance are sales revenue, customer acquisition cost, profit margin, gross margin, and advertising spending.
8 Develop a Feasible Cost Structure
Last but not least, developing a feasible cost structure is one of the vital aspects of your business operation. Your cost structure planning can be either cost-driven or value driven. Ultimately, you’ll need to minimize operating costs and maximize the value delivered to your clients.
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Vanita Lee-Tatum, Executive Contributor Brainz Magazine
Vanita Lee-Tatum is a world-class business developer and strategy consultant, specializing in helping organizations and individuals grow their business potential. Drawing on her own experience as an entrepreneur and her financial skills honed as VP of Banking, Vanita inspires and ignites business owners to create financial growth by teaching them the business development skills needed to flourish. Dedicated to making an impact by sharing her knowledge and expertise to encourage business owners and entrepreneurs of all types, Vanita is a positive force of nature who clients and partners enjoy collaborating with.
