Once you’ve taken the time to think about why you want to own a business, and considered corporate structure, legal, and accounting issues, it’s time to think about your products or services as they relate to your customers. That should come sooner, but as you will find out, the knowledge about your customers is vital to profitable business ownership.
First, consider this: What are you selling?
It’s not as simple as selling your landscaping service or furniture. That may be what you intend to market to consumers, but where business owners come up short is in believing that’s what the customers will buy. Far from it.
Let’s get specific. Owning a landscaping business can range from mowing lawns and plowing snow to designing landscapes for new homes or commercial properties and everything in between. The skills and expertise of you and your crews are essential to the brand your company portrays to the public and convey a certain value to the proposition.
So flip the coin to the customer’s point-of-view: What they’re buying is, in one case, more time they don’t want to spend mowing their own lawn, raking leaves, or shoveling snow. The other extreme is having landscape design (and implementation) that matches their lifestyle, whether it’s where they can entertain friends or showcase their home in the neighborhood … or whatever other reason.
Owning your furniture business involves products more than services, although design and delivery are aspects that involve customer expectations. So, do you sell couches, love seats, beds, mattresses, chairs, dressers, and shelves? Yes. Is that what your customers come in to purchase? Yes, but …
Are they purchasing functional pieces with certain styles that fit their decor or color schemes? Or do they insist on mid-century modern? In either case, it’s more about the lifestyle they want to have. Price certainly comes into play, but your success and profitability as a business owner lies in being able to learn and know what appeals to your customers.
As you can begin to see, there is considerable thought that needs to go into business ownership, and we’re just getting started. In part three, we’ll spend some time on how to identify your customers.