Posts Tagged ‘market research’

I have argued for small, very small, businesses over big business.  To pursue this non-conformist philosophy requires a certain level of rugged individualism.

Take, for example, Guy Kawasaki’s advice in The Art of the Start: regarding managing for cash flow.  Kawasaki says that managing for cash flow isn’t a long term practice. Eventually, he claims, a business builder will want to strategize for “paper” profits like growth, market share or brand recognition.  Management for cash flow is a strategy only for early stage bootstrapped businesses.

If your intention is to be a very small business owner, his advice for bootstrappers is useful, just don’t be sucked in by the claim that cash flow is not a long term practice. It can be.

If your choice is to create a business that will afford you a certain, adequate lifestyle, consider the life you will create as you follow Kawasaki cash flow advice for early stage start-up businesses.

Happiness is a positive cash flow. Fred Alder

Kawasaki gives the follow advice to maximize cash flow from your business:

Choose A Product That Is Easy To Sell

He is right. As you choose a business, don’t make it hard for yourself. I have worked with clients who chose to sell a debt reduction tool. They always struggle because, despite its proven success, the product is expensive, the usefulness of the product is difficult to demonstrate and the market, by its nature, is cash strapped.  Better to choose a product your market already knows it needs. Even though the market is highly competitive, there will always be someone selling easy weight loss and get rich quick schemes because these products meet a widely recognized need.  Choose a product that is just as compelling as beauty and wealth – but look for a niche with less competition.

Position Your Product

Once people recognize their pain, you want to make it an easy step to buy what you are offering.  Develop a marketing funnel.  Give your prospects a chance to experience your wares with little or risk as they come to know and trust you.  Keep your entry level product affordable, risk free and provide plenty of opportunities to build the relationship.  Remember running a successful, very small business is all about cash flow and relationship. Give your customers every chance to deepen their relationship with you and with your product.

Fill a Need

Another mistake I see my clients make early on in the business start-up process is choosing a product that fills an narrow market need. Usually this need is based on the client’s personal interest instead of a true market analysis. I’ve seen clients struggle to sell designer cat food to co-workers, or premium travel vacations to the ladies in the Fire Hall Auxiliary.  Don’t start a business, even a very small business, without first considering the size and level of need in the market. Also check for competition. If there are only 10 customers in a 100 mile radius and someone already sells high end cat food to them, you will have an uphill climb.

Follow Trends

One way to identify a need is to follow the trend. Social Media is an obvious trend but there are others: green technology, being frugal or alternative health care, to name a few. Beware. There is an art to this part of the start.  For the very small business owner, the product and the market can consume a large part of your day.  Seek a balance between following a trend and finding a product you believe in.  You will want to enjoy your customers. If you don’t like young people, don’t open a tattoo parlor.  You will want to find meaning in helping the people you serve.

Choose the right trend and you can create the good life.  Follow the trends blindly and you may become a success but miss being happy. Choose wisely.

Piggy Back on Someone Else’s Success

Like those birds that live on the backs of water buffalo, look around and see who or what is big in your world. You could create the next killer I-phone application, if you are so inclined.  A client of mine provides rides from the hotel district to the corporate office of a local training institute. Another, moves cars around for the local car dealership when a new order arrives.  Be creative. Let someone else create the need, you fulfill the demand.

What is your product?  Share it with the Working Miracles Very Small Business community by leaving a comment and test the market.

“Ready, Fire, Aim” is often championed as the technique of successful entrepreneurs.  It is also a technique employed by the leaders of the many businesses that fail each year. Market testing may be time consuming but you can gain valuable information about your market, your product’s value and your own readiness to lead your business to profitability when you take the time to test your business idea.

Here are three ways you can test your market and make money while you do it,

When you think you have a good idea, try testing the market by submitting articles to one or all of these sites.  Seek to maximize your exposure and collect data. Particularly data on who is reading your submissions, questions they are asking, any comments they share on-line and how your competition is responding.

Write About Your Industry

You can establish yourself as the go-to expert or create product demand by writing and publishing articles about your industry.  Here are two sites that publish articles and pay the authors for their work. The third offers expert advice.

Associated Content

AC’s platform enables anyone to participate in the new content economy by publishing content on any topic, in any format (text, video, audio and images), and connects that content to consumers, partners and advertisers.  Using key words associated to your small business idea (try Yahoo’s Buzz) you can publish and test the market simultaneously.

The benefits are multiple. Not only will you be gathering data about your market but you will get paid. Associated Content offers upfront payments ranging from $2 to $15 for certain types of content. In addition the content you publish can earn you money via performance payments, which currently pays a baseline rate of $1.50 for every one thousand page views it receives.

Demand Studio

This site publishes web content from freelance writers.  Once you’ve developed a portfolio, you can submit it to this site and, if accepted, begin receiving assignments based on key word research.  You continue to grow your reputation expand your expertise and continue to gather market research all while getting paid.   What’s not to love?

A great business opportunity but, a word of caution: make your move strategically.  This site is seeking quality writing from experienced writers.  All submissions are reviewed.  There is a knack to writing SEO rich copy so take some time to learn the trade before offering your services to Demand Studio.

Liveperson.com

So you say you are not a writer?  Then consider sharing your expertise at Liveperson.com an online destination where people from your niche market can seek out live experts in a broad range of categories- including yours.  Topics addressed by various experts at Liveperson.com include, spirituality, business, professional counseling, computers, and personal development.

You are an expert at topics and issues important to your market niece? As such, you can register with Liveperson.com as an expert. When you do you, you will be listed according to your professional expertise and will be available for hire by any LivePerson.com client. You receive all the tools necessary to communicate with clients and colleagues.   A quick survey revealed prices for expert advice ranging  from $4.40 per minute for an expert in India tax law to $18.90 per minute for a psychic reader and healer.

In what other creative ways can a new business idea be tested? I am interested in your creative ideas.  Let me know what you are thinking.