Starting a Business: Article 3 – What are you selling?
In video 3 of our ‘November Theme – Starting a Business’, I talked about the concept of what you’re selling. CLICK HERE to watch the video.
Many start-up entrepreneurs are too emotional about their brand, their idea and the product or service they’re offering. This combination of an emotional connection to the business results in the lack of practicality and relevance of what the market actually requires.
An example of this factor is the Tech Industry. Engineers think of an idea, create an App out of the idea, spends roughly 2 years to develop the App and burn a lot of cash in the process. When the App is ready and bug free, they take it to the market only to find out that the market doesn’t want the product they’ve given their lives to for the past 2 years.
One of the important steps in Starting a Business is to categorise and package your product or service offering and make it relevant to your customer. There are 3 aspects to consider: (1) The Emotional Concept; (2) How Needed is the Product / Service & (3) Packaging the Product / Service correctly.
Although the emotional concept of the entrepreneur is not good, since it results in a lack of practicality. An emotional concept in the selling process is required, but not the entrepreneur’s emotion toward his business. Rather, the emotional connection your product or service will have on the target market.
A perfect example of an emotional connections with a service offering is the Security Industry in South Africa. What would you say a Security Company is selling? In my opinion, they’re selling peace of mind, a sense that me and my family is safe and lastly trust.
The first aspect to answering the question ‘what are you selling?’ is the emotional concept. To get to the right answer for this, you need to ask the right questions.
Q #1: What emotional concept does your target market create in their minds regarding your product or service?
Q #2: How can you attach an emotional selling concept to your product or your service?
Q #3: Is the emotional concept you created relevant to the market’s deep desires?
The second aspect to answer the question ‘what are you selling?’ is the necessity factor. Is your product or service offering a NICE to have, or a NEED to have? This question is vital to ask. Ask yourself, ‘why does the target market need my product or service offering?’
Solving this puzzle could lead to building a recession proof business. If you think about it, what do people need every day which are non-negotiables in or out of a recession:
In my opinion, these are all great Industries to trade in, because people need to eat and drink water every day. Humans need clothes, especially in the winter. People need a roof over their head, they want to feel safe and they need to get around from point A to point B. Remember, if you serve other peoples needs, you’ll never run out of Business.
The third aspect to answer the question ‘what are you selling?’ is the practical factor. You need to package your product or service offering and make it attractive. To package your product or service and setup a sales pitch, you need to supply the market with the following information:
- Cost of the Product or Service.
- Delivery Time of the Product or Service.
- Requirements to start with the Product or Service.
- Process to finalise the Product or Service.
It’s very important for you to be honest with yourself and answer these questions accurately. If your product or service is only a nice to have and not a need to have, you will struggle with sales. People will not just spend money for the love of it, or to support you or to help you build your business because they admire your courage to start a business. They will only spend money if they NEED what you offer.
Turn your product or service offering into a need, serve people’s needs and you’ll never run out of business!