Ask the Coach - How Do You Start a Business?

Ask the Coach - How Do You Start a Business?

I have been working on starting my own business for the last two years and am now ready to  move forward, however I understand that I will need a business plan when I approach the banks for a loan.  

There are many outlines on-line but was wondering what you think are the most important areas to focus on. 

Thank you in advance for your guidance. 

Dear Entrepreneur,

First let me congratulate you on this endeavor. It is not easy to start your own business and  although extremely exciting can also be quite stressful. 

You are correct that the bank will require a business plan for a start up loan. In my experience, the following five questions will be extremely useful.

What need are you addressing? 

This is an important question because it extends beyond the simple "What does your business  do?" It's one thing to outline your business in general, describing what products you make or  what services you offer, but if you want a solid business plan you must take it to the next level. 

Its wonderful to think about your business as providing something useful, and if you are excited  about the idea, it's that much easier to think about people buying it. But you need to be logical  and critical when you consider the driving force behind your customers' purchasing decisions:  what fundamental customer need is your business addressing? You will want to back this up  with research that shows the need exists. 

What makes you different? 

It's a big world out there, and start-ups are constantly coming on and off the radar. Chances  are, there are multiple businesses out there who are already serving the crucial need you  outlined from question one. That doesn't mean you can't serve it better, or serve it in a  different way, but therein lies the challenge—figuring out what makes you different. We call it  your USP “Unique Selling Proposition”

Who is your target audience? 

Think about factors like age, sex, education, geographic location, working status, marital status,  and perform some preliminary market research to determine the best path forward. 

Your key demographic may evolve over time, so do not stay too committed to one niche. Also  remember, that it's easy to expand to other markets once you've established yourself in one, so  if you have multiple key demographics, it may be wise to focus on one to start things off. 

How is your business going to make money?

This seems like an obvious question to answer, but you would be surprised how many  entrepreneurs fail to address this issue on their plan. The brief answer to this question is "sell products/services," but how are you going to sell? Where are you going to sell? How much are  you going to sell for?

How will you promote your business?

Promoting your business is just as important as creating it. Otherwise, people will never know  who you are. Your marketing strategy should start off based on what similar businesses before you have done. Do they rely on traditional advertising or online marketing? Do they attend tradeshows and local events, or use technology to spread the word about their existence? 

Wishing you the best of luck.  

Merrill 

We have the pleasure of joining forces with Merrill Pierce, a Professional Certified Coach (PCC) accredited by Corporate Coach U, and a member of the International Coach Federation (ICF). She is also an accredited member of Society of Organizational Learning (SOL), and an Alternative Dispute Resolution (ADR) mediator certified by the ADR Institute of Canada.

Merrill has spent over 20 years working at a number of Fortune 500 companies, of which 10 years were at the senior executive level. This background provides her with a solid and practical understanding of personal and professional issues, challenges, and concerns. Merrill is also a regular contributor to the media and has published several articles and white papers on business related topics.

Merrill is ready to tackle YOUR questions! Whether they are personal, or professional - she can anonymously answer your submissions, and help you navigate any relevant challenges occurring in your life. Doing so could help others in similar situations and scenarios. Merrill will also be presenting advice on relevant, general topics to help our readers. If you want to send a question to Merrill, please submit to askmerrill@gmail.com before the Monday of each week (otherwise your question may be held til a following week!).