Business Education

Get Your Body Butter and Toothbrush Rentals Here! What could Possibly Go Wrong?

Strangely, no one is lining up outside the body butter and toothbrush rental stand. How odd? Who would have guessed such an idea wouldn’t take off? After all, you have a huge selection. So, there are plenty of choices. Yet, no one is interested. Something’s amiss here and you can’t quite put your finger on it.

Even Good Business Ideas are Not Guaranteed Winning Strategies

Okay, so the headline says it all. It’s a totally ridiculous business model. There’s not a person near or far interested in renting body butter or a toothbrush. Yet, people do come up with some strange concepts to sell and are surprised when they don’t pan out.

You’ve created something unheard of. You’re passionate about it. You believe in it. You’ve also spent an insane amount of time figuring the whole business out down to the tiniest detail. By now, you can talk about it for hours — and to top it off, it actually is a great idea. But for some reason, you can’t sell it. So, what’s the problem?
—Forbes.com

On the flip side, there’s no guarantee a really good idea will widely succeed. Even the best concepts run into problems. In other words, solid products and services aren’t immune from the realities of the marketplace. Put another way, there is no straight path from unknown to sensation.

How to Test a Business Idea

So, how do you know if a business idea is worth pursuing in the first place? How can you determine if it’s something which has a real chance of making it in the free market? Try these suggestions to establish a baseline:

Look for successful competition. Everyone wants to believe their idea is “new.” But, that’s usually not the case. In-part or whole, it’s likely been done before. So, look for examples and see how they fared.
Test different versions several times. There’s no such thing as perfect. Meaning, your business idea isn’t without some sort of flaw. Even if you’re really confident in what you’ll offer, it could perform better or worse, depending on a few tweaks. Offer a variety and see which works.
Explore the industry to gain an understanding. It’s certainly true good ideas are boxed out of the marketplace because they aren’t allowed. Perhaps it’s too heavily regulated or there are just too many obstacles to make it feasible.
Think about how it can scale and adapt over time. If the business can’t scale up to meet demand, that’s a big, red flag. And, if it’s not able to evolve with the changing times, that too, is a big obstacle.

Think about creating a Minimum Viable Product (MVP). Ok, what the heck is an MVP. A minimum viable product (MVP) is a concept from Lean Startup that stresses the impact of learning in new product development. Eric Ries, defined an MVP as that version of a new product which allows a team to collect the maximum amount of validated learning about customers with the least effort. This validated learning comes in the form of whether your customers will actually purchase your product.
A key premise behind the idea of MVP is that you produce an actual product (which may be no more than a landing page, or a service with an appearance of automation, but which is fully manual behind the scenes) that you can offer to customers and observe their actual behavior with the product or service. Seeing what people actually do with respect to a product is much more reliable than asking people what they would do.
If the business can’t scale up to meet demand, that’s a big, red flag. And, if it’s not able to evolve with the changing times, that too, is a big obstacle.

How do you test a business idea to ensure it’s a viable one? Please share your thoughts and experiences by commenting!

Interested in learning more about business? Then just visit Waters Business Consulting Group.

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Could Your Business Survive Morristown-Like Conditions?

December 6, 2024 No Comments

Contrary to popular belief, Valley Forge wasn’t the worst winter the American Continental Army faced during the War for Independence. The revolution against Britain posed many challenges, but perhaps the worst was experienced in Morristown, New Jersey. During the 6-month deployment, temperatures only rose above freezing for two days, it even snowed in May. Chilled to the bone and without food, some soldiers wrote in their diaries they built fires not only for warmth but to cook and eat their own shoes. Conditions were so bad, that extreme hunger and starvation, along with a lack of provisions and building supplies, caused many infantrymen to either starve to death, contract disease, desert, or plot a mutiny. Morale became so low the camp devolved into extensive chaos, forcing George Washington to order the execution of eight men. They were marched to the gallows, where fresh graves and open pine coffins lay right in front of them. Just as the nooses were being put around their throats, a junior officer emerged from Washington’s quarters and yelled, “Reprieve, reprieve, reprieve!” Quickly after, seven of the prisoners were set free, but one desperate, unfortunate soul, was hanged to death in front of the entire camp that day. While Valley Forge is the most recognizable historical event, when it comes to prolonged suffering, Morristown was markedly worse. One could argue the siege of Charleston rivaled such trying times given the sheer terror unleashed. Residents of the city faced for 40-plus days as the British bombarded the town day and night. The Continental troops, severely and woefully outnumbered, tried to hold the Red Coats off, but to no avail. Eventually, commander General Benjamin Lincoln was forced to capitulate and had no choice but to surrender. Obviously, the American colonists persisted in their move for Independence against the crown, and today, the United States is the most powerful and prosperous nation on the planet. But it didn’t happen without great sacrifice and perseverance through extraordinary circumstances. The country has experienced at least a few huge economic downturns. Business cycles that were so bad, they forced several companies to shutter their doors forever. 7 Strategies for Small Businesses to Survive During Lean Economic Times While you probably won’t experience such extreme circumstances, a struggling economy can bring harsh times. Small businesses often face significant challenges during lean economic times. However, with strategic planning and thoughtful decision-making, they can navigate these difficult periods and emerge stronger. Here are some key strategies for small businesses to survive and thrive during economic downturns: 1. Manage Cash Flow Prudently Cash flow is the lifeblood of any business, especially during tough economic times. To manage cash flow effectively: Monitor cash flow regularly. Keep a close eye on your cash flow statements to understand where money is coming from and where it’s going. Delay non-essential expenses. Postpone any non-essential expenditures and focus on spending money on what keeps the business running. Improve receivables. Encourage prompt payment from customers by offering early payment discounts or tightening credit terms. 2. Cut Costs Wisely Reducing expenses without compromising the quality of products or services is crucial: Negotiate with suppliers. Talk to your suppliers to get better deals or extended payment terms. Reduce overheads. Look for ways to reduce overhead costs, such as downsizing office space, reducing energy consumption, or transitioning to remote work if feasible. Outsource non-core functions. Consider outsourcing non-essential functions like IT, payroll, or marketing to reduce staffing costs. 3. Diversify Revenue Streams Relying on a single source of revenue can be risky during economic downturns: Expand product/service offerings. Introduce new products or services that complement your existing offerings. Explore new markets. Identify and target new customer segments or geographic areas. Leverage online sales. If not already, establish a strong online presence to reach a broader audience and increase sales. 4. Enhance Customer Relationships Maintaining and strengthening relationships with existing customers can provide stability: Communicate regularly. Keep in touch with customers through email newsletters, social media, and other channels to keep them engaged and informed. Offer value. Provide exceptional customer service and value-added services to retain loyal customers. Seek feedback. Actively seek customer feedback and use it to improve your products and services. 5. Optimize Inventory Management Effective inventory management can free up cash and reduce waste: Just-in-time inventory. Implement just-in-time inventory practices to reduce holding costs and minimize excess stock. Use inventory management software. Leverage technology to keep track of inventory levels and make data-driven decisions. Negotiate with suppliers. Arrange for smaller, more frequent shipments to keep inventory levels low and responsive to demand changes. 6. Invest in Marketing and Branding Cutting back on marketing may seem logical during tough times, but it’s important to stay visible: Utilize cost-effective marketing channels. Focus on digital marketing channels such as social media, email marketing, and content marketing to reach customers cost-effectively. Enhance your brand. Strengthen your brand’s presence and reputation to stand out from competitors. Measure results. Track the effectiveness of your marketing efforts and adjust strategies as needed. 7. Seek Financial Assistance Explore available financial assistance to maintain liquidity: Government grants and loans. Look for government programs offering grants or low-interest loans to small businesses. Line of credit. Establish a line of credit with your bank to provide a financial cushion in times of need. Crowdfunding. Consider crowdfunding platforms to raise capital from a broader community of supporters. And here’s a bonus tip: adapt and innovate. Keep in mind that flexibility and innovation can help small businesses stay relevant by embracing technology. You can implement new technologies to improve efficiency and customer experience. Also, be open to adjusting your business model to meet changing market demands and consumer behavior. What’s more, stay Informed. Keep abreast of industry trends and economic forecasts to make informed decisions. By implementing these strategies, small businesses can better navigate lean economic times, avoid going out of business, and position themselves for future growth. Remember, resilience and adaptability are key to weathering economic storms and coming out stronger on the other

How Small Business Owners Can Determine Which Social Media Sites Are Best Suited to Promote Their Products and Services

July 20, 2023 No Comments

With the launch of Threads by Instagram, parent company Meta has introduced yet another social media platform. On its first day alone, the site acquired more than 70 million sign-ups. By the weekend, it accumulated over 100 million. That’s an impressive feat, given the current landscape is dominated by the likes of Facebook, with 2.9 billion monthly active users, Instagram, with 2.35 billion monthly active users, and YouTube, with 2.6 billion monthly active users. But, it also adds to the already large pool of social sites, with roughly 128 portals. However, the average person only engages with 5 or 6 at the most. So, that means small business owners need to choose wisely. How Small Business Owners Can Determine Which Social Media Sites Are Best Suited to Promote Their Products and Services In today’s digital age, social media has become an essential tool for small business owners to promote their products and services. However, with an abundance of social media platforms available, it can be overwhelming to determine which ones are best suited for your business. Below is a simple guide small business owners can use to help them determine the right social media platforms to effectively promote their products and services. Understand Your Target Audience The first step is to clearly define your target audience. Understand their demographics, interests, and online behaviors. Consider factors such as age, location, gender, and preferences. This understanding will help you identify the social media platforms where your target audience is most likely to be active. Research Popular Social Media Platforms Conduct thorough research on the various social media platforms available. Familiarize yourself with their features, strengths, and user demographics. Some popular platforms include Facebook, Instagram, Twitter, LinkedIn, Pinterest, and YouTube. Each platform has a unique user base and offers different features and advertising options. Analyze Platform User Demographics Compare the demographics of your target audience with the user demographics of each social media platform. Look for alignment between your target audience and the user base of the platform. Evaluate factors such as age, gender, income level, and interests. This analysis will help you identify platforms that have a higher concentration of your target audience. Consider Platform Features and Content Format Different social media platforms offer various features and support different content formats. Consider the nature of your products or services and determine which content formats would best showcase them. For instance, if your business relies heavily on visual content, platforms like Instagram or Pinterest may be more suitable. If your business focuses on professional services, LinkedIn might be a better fit. Assess Competitors’ Social Media Presence Analyze how your competitors are utilizing social media. Identify the platforms they are active on and observe their engagement and follower base. This analysis can give you insights into which platforms are effective for businesses in your industry. However, remember to differentiate your strategy and not merely replicate what your competitors are doing. Determine Your Resources and Time Commitment Consider your available resources and the time you can allocate to social media marketing. Each platform requires time and effort to create and maintain a strong presence. Evaluate your capacity to consistently create quality content, engage with followers, and respond to inquiries on different platforms. It’s better to focus on a few platforms and excel rather than spreading yourself too thin. Test and Measure Platform Effectiveness Start with a few selected platforms that align with your target audience, business goals, and available resources. Create compelling content, engage with your audience, and measure the results. Monitor key metrics such as reach, engagement, click-through rates, and conversions. Analyze which platforms yield the best results and focus your efforts on those that generate the highest return on investment (ROI). Adapt and Evolve Your Strategy As your business evolves and social media trends change, be open to adapting your strategy. Monitor emerging platforms, stay up to date with industry trends, and be willing to experiment with new platforms if they align with your target audience. Regularly assess the effectiveness of your chosen platforms and make adjustments to maximize your social media marketing efforts. In summary, choosing the right social media platforms for small business promotion is crucial for effective marketing and reaching your target audience. By understanding your target audience, researching platform demographics, considering features and content formats, assessing competitor presence, and evaluating your resources, you can make informed decisions. Regular testing and measurement of platform effectiveness will allow you to refine your strategy and maximize the impact of your social media marketing efforts. Remember, social media is a dynamic landscape, so be flexible and adapt your approach to stay ahead of the curve and connect with your audience effectively. What other suggestions do you have for how small business owners can determine which social media sites are best suited to promote their products and services? Please share your thoughts and experiences so others can benefit from your input! Interested in learning more about business? Then just visit Waters Business Consulting Group to learn more about us and the services we offer.

Use Your Past to Build a Better Future

May 16, 2017 No Comments

Mistakes, missteps, adversity, hurt, and failure. All of these are negative experiences, at least, at first impression. We’ve all dealt with heartache and heartbreak, with disappointment and resentment. So many pessimistic experiences and impressions can easily discourage to the point of apathy. It’s choosing another path to deal with such occurrences that’s one of the single most difficult things to do in life, and in business. There’s just no avoiding the fact that mistakes will be made, perhaps even to the extent of leading to outright failure of a company, even for entities that are established and realizing a profit. No matter the size or presence of a brand, it can deteriorate and ultimately flounder to the point of no return. We’ve seen this before in the business world, particularly in giants: Blockbuster Video, Circuit City, Borders Books and Music, Radio Shack, Montgomery Wards, Steak & Ale, the list goes on and on. Use Your Past to Build a Better Future One obstacle to overcome is being creatures of habit. Sure, these definitely differ from person to person, but regardless, remain part and parcel of our day-to-day routines. It’s quite easy to let this phenomenon creep into a business environment, and sometimes, with the best of intentions. Habit (read: practice and procedure) can be a good thing. It can also be a death knell, and when you can’t pinpoint the root cause, make you susceptible to more than one failure. The more clearly you understand your strengths and how they enabled you to get to this point, the more effectively you can leverage them into a bright and fulfilling future. It’s important not to regret the past. Instead, you must appreciate all of your positive experiences and find a way to learn from the negative ones. —Business Insider Our past is part of who we are, but, it doesn’t have to define who we are or what we can become. If you think about it for a moment, your past is one of the most valuable weapons you have in your arsenal leading you into the future. This is so understood, it’s actually become a set of quintessential cliches. We see these motivating messages all the time and get a lift. That feeling subsides and it’s human nature to let the past work its negativity on us. I share with my clients that although my successes are something I appreciate, it is my failures that provided me the learning to excel and help others accelerate their success in less time and less mistakes. Failure is the precursor to success. Failure is an event so do not let it define who you are. Use your past to empower yourself and move forward with your future: Change small things, one at a time. There’s a technique in the world of psychology known as, “solution focused brief therapy.” In short, it works by putting focus on building solutions instead of problem solving. It works in a splendidly simple way: you change one small thing at a time. It could be waking-up 10 minutes earlier, exercising just a little every day, or working on this or that skill. Whatever it is, when you become better at it, you’ll feel a genuine sense of accomplishment. Take-on tasks you regularly avoid. Speaking of exercise, this is one thing many people avoid, though it certainly isn’t the only one. You might not like talking on the phone, going-over or creating certain documents, or some other task. Here again, whatever it might be, incremental change is key. Know and accept your weaknesses. You might not be good at this or that, and that’s perfectly okay. For entrepreneurs, this is a very difficult concept to accept. Being natural self-starters, optimists, and enthusiasts, not being able to excel at something is foreign and frustrating. When you do accept your weaknesses, you’re actually demonstrating your own strength, particularly if you bring-in someone else that has those exact skill sets. Look at yourself through another’s eyes. You probably get compliments from time to time, though these might not be overt. Take stock in each one by accepting them for what they are, and know it’s how the person who gave it truly feels about you. [shareaholic app=”follow_buttons” id=”26833294″]