How do you start a company from the ground up? This is the topic that this week’s guest, Kailene, asked, and one that I’m sure many of you have pondered as well.
Setting up a business is a difficult task, especially if you don’t have any investors or a million dollars to put into it.
But it’s doable if my wife and business associate and I are any indicators. We’ve developed six companies from the ground up, learning from our errors and gaining a wealth of knowledge along the way. If you’re a bootstrapping entrepreneur trying to start your own business, like Kailene, keep reading for my three important insights that every aspiring entrepreneur should know.
1) Clients Are More Important Than Income.
Don’t get me wrong: I’m not opposed to producing money or revenue. However, you must first get clients. Your first consumers will serve as a learning experience. They allow you to practice and test out your service, product, or concept on them.
Most essential, (hopefully) your first customers will provide testimonials. At Brand Builders Group, my wife, AJ, recently performed a study that looked at current trends in personal branding.
The number one most significant aspect in their decision to pay for a product or service, according to 62 percent of Americans, is whether the brand or company has testimonials regarding their work.
Even if you have to provide free services to your initial customers, it will be worthwhile if they are willing and able to speak to the quality of your job.
Any business’s early days merely practice; you must establish systems, processes, content, and confidence over time. Concentrate first on attracting clients and offering a fantastic experience; revenue will follow.
2) Never Ask Yourself, “What i’ll Be Doing?” “Whom Should I Be Serving?” You Might Wonder.
This is the most common blunder made by new business owners. They are preoccupied with themselves, wondering, “What should I do?” “Whom should I be serving?” we tell our clients at Brand Builders Group. If you can first figure out who you’re talking to, you’ll have both purpose and clarity.
The “who” is in charge of informing, instructing, and designing your complete business model.
After you’ve answered who you serve, the following questions (and their responses) will appear:
I’m not sure who I’m supposed to be serving.
What exactly do they require?
I’m not sure what I can provide them.
What would it cost in terms of time and money to provide them with that item?
All of this stems from a single question: to whom should I be serving?
3) References Are Even More Important Than Consumers.
It’s critical to discover customers, but it’s even more critical to find referrals. These referrals will most likely come from your friends and family if you don’t have any investors or millions of dollars.
However, it is critical that you do not bombard your friends and family with constant sales pitches in order to obtain these referrals.
When you sell to your friends and family, you’re more likely to burn up tolerance in such relationships. “Here they come again, offering us their product,” you think to yourself as you approach them.
“Asking your friends and family for referrals first will be far more effective (and less detrimental to your connection).
Make a list of everyone who has faith in you. Then phone those individuals and explain your situation.
“Hey, do you mind if I take a minute to give you an update on this new business I’ve started?” said. If they say yes, explain what you’re up to and ask if they’d be willing to introduce you to others. Referrals are far more beneficial to you as a bootstrapped business than a single sale from a friend or family member.