Not every business owner possesses inherent business sense or thorough knowledge of their industry. Proficiency in business management is a skill that requires time and experience to develop. Unfortunately, many individuals never acquire the necessary expertise to effectively run their businesses, despite the abundance of information available through paid and free resources. With round-the-clock internet access, countless organizations offer valuable resources, mentorship, and workshops to enhance business understanding. It is wise to seize the opportunity to leverage these free resources from organizations dedicated to helping entrepreneurs start and grow their businesses. Unfortunately, many entrepreneurs tend to disregard valuable information from those sources, opting instead for more entertaining content.
To excel in business, cultivating a business mindset is crucial. Similar to exercising muscles, the more you engage in it, the stronger you become, setting yourself apart from others and driving your business forward. When it comes to dealing with people, two mindsets prevail, the consumer mindset and the business mindset. The consumer mindset focuses on consumption, with no middle ground. While having a consumer mindset is acceptable in its proper context, it is not conducive to success when interacting with clients and customers.
The reason behind this is that consumers are primarily concerned with two aspects: how a product or service makes them feel and what benefits they derive from it. Their perspective is predominantly emotional and self-centered. However, running a business necessitates the entrepreneur’s focus on every aspect except their own personal interests or needs. To generate profit, entrepreneurs need to prioritize their customers, as they are the source of revenue.
So, what should entrepreneurs prioritize? The following list outlines key areas and their importance:
- MARKETPLACE
Business owners should consistently consider the marketplace, and various channels through which they sell their products or services. These channels can include websites, online marketplaces like Etsy, Amazon, Walmart.com, Faire, apps, vendor events, tradeshows, job boards, and directories. These channels function as highways that provide a steady stream of revenue for the business. It is crucial to stay aware of which sources yield the highest return on investment (ROI) and which ones increase exposure, even if one may disagree with how certain marketplaces are governed or policy changes. The primary concern should be whether they contribute to a good revenue stream. - CLIENT/CUSTOMER NEEDS
Many business owners make the mistake of selling what they personally prefer without considering the needs of their customers. Some may delude themselves into thinking that customers will prefer their product or service over others, despite lacking supporting data. Always prioritize the needs of customers and focus on enhancing their experience. Conduct surveys to determine what your target audience requires. Test products in small quantities before making significant investments. Countless business owners find themselves stuck with unsellable products because they fail to consider their clients/customers during the creation, research, or sourcing stages of their business. - PURCHASING HABITS
Attentiveness to customers’ purchasing habits is crucial for budgeting during slower months and determining when to allocate more resources to business growth. It is a fallacy to assume that every month will yield the same revenue without obstacles. Every business runs in a cycle, and it is the entrepreneur’s responsibility to understand these patterns for their business. Learn which months are busiest and bring in the highest revenue, as well as which months are slower due to seasonal factors. Consider market influences such as layoffs, natural disasters, political climate, and current trends, as these can impact revenue flow. Avoid emotional reactions when sales decline; instead, analyze the situation and identify how to use it to your advantage. - QUALITY OF PRODUCT/SERVICE
The quality of your offering should always be a primary concern. Seek ways to improve the quality of your product or service. When sales drop, focus on assessing and enhancing the quality as a troubleshooting measure. Pay attention to customer reviews and identify areas where feedback can significantly improve your offering’s quality. - DEMAND
Is there a demand for your product or service? Will people still want it in the future, whether in two years or five months from now? A vigilant entrepreneur continuously monitors marketplace demand for their product, service, and business. Some businesses gradually phase out due to a lack of demand. By keeping an eye on market demand, entrepreneurs can pivot their strategies before it becomes too late.
An entrepreneur’s considerations should revolve around their target audience and exclude personal emotions. None of these decisions are based on subjective sentiments. To simplify matters, always prioritize your target audience and make rational decisions that strategically benefit the customers you serve.
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