54. Six things I wish I would have known before starting my business
New business? Where to start?
Oh! The things I didn’t know when I decided to start my own business… the things I wished I would have known and my tips on what I would have done, if I would have known what I know now.
Knowing a craft doesn’t mean you know how to run a business in that area:
If you know how to do something well, in my case it was photography, in your case it could be cooking, sewing, nutrition, sport, knitting, art, pottery, etc… it doesn’t mean that you understand how to run a business that is profitable in this, that you understand how to make money with this talent that you have.
My tip:
Take a business class from the industry you want to go into to understand what are the main cost drivers and sources of income. Understand what competition looks like and what the main pain points and desires of the customers are.
Just because the “industry” tells you how it has always been done, it doesn’t mean that you can’t do things differently:
At the beginning, as I didn’t know much about the industry I was going into and let alone in a foreign country, I tried to “follow the industry standard” and “fit in”. It course got me through the first years, but I wish I would have.
My tip:
Learn soon enough what makes you different and where is your competitive advantage in doing things differently. Sometimes providing your service or product in a unique way as it relates to the market you are serving is enough to create a competitive advantage.
Start creating a “portfolio” or “client base” you can use for testimonials and ASK for them!:
Unless you are somewhat established in your area of expertise and have been doing the same work for a while and now you are starting a new business on your own and already have past clients, then you need to be doing this as soon as possible.
At the beginning, you will need work that you can show if it is something tangible or reviews and testimonials if it is for example a service you provide.
My tip:
There is no better “Social Proof” than past customers who are happy to recommend you.
Don’t forget to actively ask for testimonials. If you want some ideas on how to ask for them, check this post right here
Establish your desired pricing early on:
When creating a “portfolio”, establish your pricing from the beginning. This, I REALLY wish I had known this BEFORE.
Even if you give away your product or services for free for a while until you gather experience and reviews, clearly communicate the value of your product or service, otherwise it will be very hard to raise your pricing at a later time. If those people want to buy from you or get your services in the future, they will have no point of reference of how much it is REALLY worth.
My tip:
If you need to offer your services and products at a discounted price or for free, make sure you let the people know how much they would be paying if it would be full price.
A nice way of doing this could be by giving them a Gift Certificate that indicates the value, that way it can be clear that it is a one-time-gift.
Hear it from the source: Make customer interviews
Interview ideal clients to understand how to adjust your product or service to serve them better, to understand their pain points and how you can help them solve it.
There is no better way to communicate your offer than to speak the same language as your clients, so listen attentively.
My tip:
Make sure that the people you are interviewing are either past customers or people who are genuinely interested in your product or service, someone who would be willing to pay for it.
Create a catalog of open-ended questions that you want to ask them, but be prepared to “dig deeper” and do follow-up questions if you see interesting topics come up.
You can offer them something in exchange for their time, best if it is related to your business.
If possible, ask them to record the interview so that you can go back and listen again to what they have to say.
Create a Business Plan:
“A goal without a plan is just a wish” Antoine de Saint-Exupéry.
Make a Business Plan from the start, it will help you structure your business, establish goals and understand how to make money and be profitable while doing what you love.
For better understanding on why a Business Plan is important as an entrepreneur or even a solopreneur, read this article
My tip:
You don’t have to over complicate things. Creating a business plan can be exhausting and complicated, however, as a small business owner, who has time for complicated?
At the end of this article, I share with you my simple and uncomplicated Business Plan template. This template can get you started into putting goals on paper, to make them a reality.
Download this template to help you create a very simple Business Plan.
Hi! I’m Blanca!
I’m a Brand Photographer and Personal Branding Coach, helping female entrepreneurs to create a Personal Brand online that STANDS OUT.
I bring your vision to life, help you come up with one and take you by the hand into the online World if you need me to.