You got an idea, and now? What is it that you need to do in order to make this idea become a solid and professional business? Here are my thoughts.
Starting a business is not difficult, not easy, not simple, not complex – your business will require a lot of effort from you and sometimes you don’t need to put a lot of money into it to have a sucessfull business. Nowadays, most businesses are made online, and even if it’s a local store you will still need an online presence to persuade a bigger range of customers.
But let’s focus on the online market, lets take as an example a business like Spotify/Apple Music. As a music business you will need to identify:
- Products to sell;
- Consumer market;
- Pricing for Products vs Consumer;
Let’s start from the bottom – COMPETITION. Spotify was one of the first in the market of music subscribtions and because of that they didn’t have so many competitors neither pricing lists to beat. But in case of Apple Music, they arrived to the market after Spotify, so they adjusted the products according to the competition. It’s good to analyse the competitors to see what they are doing well – because you will want to do it well too – and also to see where you can beat them because you have something better. In the current business Era all the companies require constant competetion analyses to make sure they can evolve and bring new advantages to their products.
Now PRODUCTS, what will you sell/provide to your customers? For a music service the product is music but how will you distribute it? You can identify 4 different products:
- Full Access
To who do you want to sell these products? Who is my CONSUMER MARKET? You can identify 3 types of consumers:
- Group of Individuals (Family – 2 Adults + 2 childrens)
- Company (8 Individuals)
So now you need to build a PRICING matrix, like the one below (per year):
And now? You already have the foundations so the next step is the BRAND. “A brand is a name, term, design, symbol or other feature that distinguishes an organization or product from its rivals in the eyes of the customer. Brands are used in business, marketing, and advertising”. In a bullet summary you will need:
These three elements will be used in:
- Business: Legal Contracts & Invoices, Terms & Conditions, etc..
- Marketing & Advertising: Social Networks, Newspapers, Business Cards, etc…
If you are building an online store, make sure your brand name is also available as a web domain. You can check that easily, using GoDaddy:
- Go to www.godaddy.com
- Search for your brand name (I recommend domain .com because most of the people will search for it);
- Check if it’s available;
Buying a domain is like registering the brand online, and an essential step on a successful business. After this, you have a quick skeleton of your business – which you can use to discuss with investors, friends and family. A good discussion will allow you to see the weaks, strenghts and adjustments required to your business skeleton.