In the wake of the 2008 global recession, many countries continue to struggle with economic difficulties. Australia hasn’t been shielded from this hit.
On the bright side, this can work well for innovative ideas in business.
Larger businesses, weakened by the economy, have less of a monopoly on their respective industries, meaning smaller businesses have the opportunity to thrive.
And by smaller businesses, of course, I mean you!
Right now, you’re looking at a shiny opportunity to start your own business. Maybe you’ve always dreamed of running your own business, or maybe you too have felt the impact of the recession and are currently jobless. Why attempt to get a job in a market where nobody is hiring? Why not start your own business and BECOME the market?
Here’s a general three-step process to starting your own business.
- BUILDING A PROFITABLE BUSINESS FOR WOMEN: Figure out what you’re going to sell.
This is where a lot of people get hung up, because they know what they want to sell, but the key here is selling what people want to buy.
So for example, you might make a killer cheeseburger, but you’re trying to sell to a vegan demographic, then your business is probably going to tank. So when I say ‘figure out what you’re going to sell’, what I really mean is ‘figure out what people want to buy’.
Here’s a practical example. Let’s meet Jett. He’s a spritely gentleman who has established a business geared at selling clothes – the types of clothes you’d wear at a nightclub. He’d spent a great deal of time at night clubs and had everything you could possibly want: clothing, jewelry, accessories, etc.
The problem, however, was that he’d set up shop next to a retirement home in a relatively low key, rural community. He knew everything there was to know about night club apparel, but unfortunately, he was offering products that nobody wanted to buy and the business went under within a year.
A better option may have been to speak with people around town and figure out what they wanted to buy. By studying the market, he would then start to see trends. Maybe a common complaint was that people disliked their grills, but found their local options were limited. In this case, he’d do well to partner with a new grill manufacturer and introduce that brand into the town. THAT would be a successful business. He’d be helping the manufacturer reach a new market; he’d be providing products that his market wanted to buy; and naturally, he’d be making money as a result.
This is only an example, but you get the idea. The first step is to figure out what the market wants to buy, which will be what you want to sell.
- BUILDING A PROFITABLE BUSINESS FOR WOMEN: Choose a target market.
This step seems redundant, but it’s actually slightly different from the above. In step one, you were looking for a general gap in the market, but not from specific people. Continuing with the grill example, you might have heard from a 40-year-old man “I dislike my grill”. Or, you might have heard from a 19-year-old girl “my dad dislikes his grill”. Either way, you’re recognizing a need for grills.
Now you want to zero in on your target market. Who is more likely to buy grills, a 40-year-old man or a 19-year-old girl? This is a crucial element because if you misunderstand your target market, you’re going to hemorrhage money by marketing to the wrong demographic. Start by making a general estimate about WHO is going to buy your product. Men? Women? Both?
Okay, now zero in on age group. What age is your target market? Are we talking teenagers? College kids? Adults? The elderly?
You want to avoid getting TOO specific, because otherwise you may alienate people who would have otherwise bought your product. Figure out a general demographic, and then gear your advertising toward that demographic. Put ads in the magazines your demographic is likely to be reading. Buy commercial airtime on television stations that your demographic is likely to be watching. You get the idea.
- BUILDING A PROFITABLE BUSINESS FOR WOMEN: Is the product profitable?
This one is pretty self-explanatory. Are you making money, or losing money? If you’re making money, are you making enough money to warrant continuing with the business?
You’ll want to be fairly realistic with this step, especially when you’re first starting out.
If you’ve been in business for a week, it’s unrealistic to expect to be making $133,000 AUD in profit. In general, you want to aim for breaking even, or maybe making a slight profit – at least initially.
That being said, don’t be discouraged if you find yourself losing money. Although it seems like if a business is losing money, then you should probably get rid of it. But, many starting businesses go through ebbs and flows, so it’s natural to go through periods where your bottom line is in the red.
There’s not really a hard guideline in this regard – I can’t really say “if you’re losing X AUD per quarter, you need to get rid of your business” – it’s more of a judgment call on your part. If your business is in the red, do you foresee being able to turn your profits around? Be honest with yourself.
Finally, get advice!
This guide is just to get you motivated and kick start some ideas whizzing around in your head. It’s always important to get professional, one to one advice relevant to your industry before embarking on any venture. Luckily, I can help with that too!
