Answering the 6 Big Questions About Your Business
1. What are the products or services your business is offering
This section will cover the different products or services that are available in your business. Your company will be offering a service or product that you want to provide. You need to decide on what style of business you will be running and then think about how the business will be structured, what your services or products are and what you plan to sell them for. Some examples of products or services include, but not limited to,
-Food (snacks, such as cereal bars)
-Convenience store (already in operation)
-Online market place for farmers to sell their produce
Once all of these have been decided, it’s time to start thinking about how you can offer the service or product. It may sound easy but it’s not always as straightforward as it sounds. And before you know it, months have passed and your ideas have ground into dust!
2. Who is your business target customer(s)?
In a business, there are specific target customers which you want to reach and generate revenues. It is important to identify the target customers and figure out how they can be reached. Target customer definition: A specific type of customer who has an interest in your company’s product or service.When you want to start a new business, it’s important to know who will buy what you sell
3. What are the solutions that your business can provide or problems it can solve?
Startup businesses need to solve issues or problems by providing innovative and creative solutions. The companies that are successful in this endeavor, are those who provide a unique and time-saving solution. A business idea is appealing when you know what the key problems or needs are that your business is going to solve.
For example, Uber has provided a solution to the taxi industry by creating an app that allows people to book taxis on the go. The company was able to do so because of their broad vision that allowed them to see past the short-term hurdles of starting a taxi service. They saw how transportation could be reimagined and they were able to do so with their business model.
Another example would be Airbnb, which has found success by providing travelers an alternative way of finding accommodations for their stay abroad. Airbnb’s business model is also unique in its own right because it doesn’t rely on hotels or other forms
4. What is the market size of your potential customers
Most people will tell you that your business idea is viable only if your target market is large enough. But what does this really mean? Many would say that a large market size means great potential share, profit margins and sales volume. But all these are not the same. Your business idea might be great, but if there are too many other competing brands in the market, it might not be profitable or have a sustainable growth.
It also means an increased competition which makes it difficult to get the customers’ attention on your brand and products/services. The share of profit and sales volume may also dwindle over time if you target a small market.
In conclusion, the size of your potential customers should vary depending on various factors such as who you are targeting with your product/service.
5. What are the competitors’ strengths and weaknesses in relation to yours, and how can you use this information to help improve your business operations?
The biggest competitor of your business will always be yourself. If you are able to identify how the competitors are comparing with your company, it can give you the opportunity to leverage their weaknesses and capitalize on their strength. In doing this, it is important to understand where your company falls in relation to the competition.
For example, if you are a restaurant but also offer online delivery service, the competition is not just other restaurants but also other restaurants that offer online delivery as well. Additionally, in this particular case, there may be some companies that offer a different kind of food than what is offered by your restaurant or they may have a more extensive menu selection than what is offered by your restaurant. In order for you to compete effectively with these competitors, it is imperative that you have an understanding of where they stand and where you can enter the market and compete with them.
6. What is the revenue model for your business?
The revenue model for your business is the process of planning the financial resources that will be used to create, market, and distribute your product or service. While there are many ways to make money in a business, each model can be classified into two general types: subscription-based and per-sale revenue models.
