Entrepreneurs may come up with great ideas regarding their product or service, but often fail to communicate properly with their target audience.
Communication has changed as has the business. Therefore, I have prepared 10 questions every entrepreneur should answer to reach their audience and get a good return on their investment.
1. Why should I buy your company’s products or services?
The new generation of consumers behaves slightly differently from the previous generation.
For instance, Generation X buys something for the feelings it can bring to them, however the Generation Y/Millenials rely mostly on word of mouth to greatly influence their purchase decisions (think Social Media Influencers).
And Generation Z is technologically savvy, empathetic, and independent, therefore, they prefer to shop quality and are confident consumers who want to be in control of their shopping experience. It's all about the experience.
2. Why is your brand different from others?
Having a lower price is not enough to secure your market share. Your company has to build a brand and branding is required.
If your brand does not have a strong impact, the other differentials will probably not be as noticeable. Invest in it!
“Your brand is the single most important investment you can make in your business” — STEVE FORBES, EDITOR IN CHIEF OF FORBES MAGAZINE
3. What is the value of your company?
This is one of the unanswered questions. It is important that you know the role of your company in people’s lives.
You can help them learn something new, do an activity faster, and more. The value of your business is the value you deliver to your customers.
4. What is your cost of customer acquisition (CAC)?
Thinking about how you will attract customers to your business is essential.
It is often not possible to do this alone and it is necessary to hire an advertising agency to do market research and launch an assertive advertising campaign.
5. What is the return on investment (ROI)?
ROI is the cash value you earn on your investment. It is only attractive to undertake when the hope of return is greater than the return on a low-risk investment.
Therefore, it is necessary to calculate how long it will take to wait for the business to start making a profit.
6. How will you advertise your product?
In conventional, digital media or both? You need to know how best to reach your target audience.
Do people who buy your product or service usually buy on impulse or need some time to think?
Knowing how to answer this question is essential to creating the right marketing strategy.
7. Who are your competitors and what market share do they have?
It is important to know who you compete with and how important that competitor is to the market.
If your product and service is innovative and has no competitors yet, you need to think about substitute products or services.
One must think about how to attract a portion of consumers to what you offer.
8. What is your growth plan?
You want your business to be the size of a family business, whether you conquer the market in your region or the national market.
It is important to be clear, as the way to prepare for growth is different in the cases cited.
"The minute you’re satisfied with where you are, you aren’t there anymore." — Tony Gwynn, Hall of Fame Baseball player
9. Who will be your Sales Development Person or Team?
Do you already know that to sell a product you need a sales representative or a sales team because it is through them that buying intentions become real purchases and increase sales for your company?
10. What is a success for your company?
There are several ways to measure a company’s success, and profitability is certainly one of the most important.
But beyond that, it is important to define whether you define success as attracting new customers or retaining old customers, growing the product portfolio, or continuing to specialize in the product you produce.
“My biggest motivation? Just to keep challenging myself. I see life almost like one long university education that I never had -- every day I’m learning something new.” -- Richard Branson
Are you ready to become a successful entrepreneur who knows their customer?
Contact me at firstname.lastname@example.org if you need help with launching your product, getting an investor, and much more.
As a successful entrepreneur, Brian consults with other entrepreneurs to increase sales and scale their business. He has worked closely with Fortune 500 companies, top influencers, thought leaders, and the brightest business minds. His experience expands to nearly every industry, which means he brings a wealth of knowledge to any business venture.