Following up with my previous post on the inspiring entrepreneurs and businessmen, Donald Trump and Richard Branson, I believe there are three important things we can learn from these individuals. Three essential elements that entrepreneurs need to keep in mind when they are formulating a business plan and looking to launch a business are:
1. Know Your Target Market…. Focus!
2. Create a Brand and Culture…. Be Unique!
3. Project Your Growth…. Realistically!
Know Your Target Market
First of all, if you’re planning to start a business, make sure to write a business plan. Too many people already fail with a business plan written, but even more fail without one. Why shoot yourself in the foot? Second, when you start writing your business plan, think about the target market you plan to attend to. You really need to focus in on this one. Sure, your product and service may reach a wide span of customers, but you still need to target a particular demographic and psychographic consumer. Paying attention to the targeted consumer market will help you make sales faster, which in turn will help grow your business. From there you can start planning to target other demographic markets accordingly, if need be. Some businesses even start out targeting a particular market, and then find out their market is something completely different.
Create a Brand and Culture
If it’s one thing that Trump and Branson have done effectively and uniquely, it is creating a brand and culture that reflects their own identities. When people think of Trump, they immediately think big, prestige, quality, high-value, and meticulous. When people think of Branson, they think trendy, cutting-edge, vibrant, and no boundaries. Both of their brands have similar attributes, but it is the culture that really sets them apart. These two components of business are what you need to hone in on and revolutionize with your own business. What is going to separate you amongst the hundreds or thousands of others out there competing with you? What is your story?
Project Your Growth
Trying to project the financials for a startup company is like pulling teeth. It’s just a painstaking necessity that investors and lenders are going to want to know to see if you know what you’re getting yourself into. And they want to know if you are being realistic about it, or just throwing out some outrageous numbers to make the business look like a booming one. This is one of the most common mistakes that new entrepreneurs make, especially if they have never started a particular business or have any previous experience. Extensive research needs to be conducted along with a great sense of intuition and fortune telling. Projections are never going to be exactly what you think they are or what you hope for, but having a projected revenue plan will definitely help as a guide for you to see where you can make changes along the way.