Is There Truly a Market for Your Proposed Product or Service?
Whether you are buying an existing business or starting a new business, take the time to test market your proposed product or service. Your customer is the one who ultimately decides whether your business succeeds or fails, so be sure that potential customers are willing to part with their hard-earned cash to vote in favor of your product or service. One of the advantages of buying an existing business is knowing that a market already exists, but it would be wise to investigate further so that you fully understand that market.
Crafting Your Company's Value Proposition
You already know how important it is to test market your product or service whether you are buying an existing business or starting a new business. It's equally important to articulate why customers should buy from you instead of one of your competitors. What makes you different? What is your business's unique selling proposition? Hint: "we do it better, faster, etc." isn't it - everyone says that. Steve encourages you to take some time to really explore all the ways you can distinguish yourself from your competitors. Ask your own business advisors to assist with the process, or ask Steve by phone or email to help further the process.
What Do Your Customers Want
Thinking about your business from the customer side of the table will help ensure that you are meeting and exceeding customer expectations, ultimately leading to your long term business success. Success in your business is ultimately determined by your customers - not you, your product or service, or even your employees. Whether you are considering buying a business or starting a business, Steve encourages you to put forth the time and effort to discover, understand, and measure what matters to your customers.
Buy an Existing Business or Start a New Business from Scratch?
Consider the pros and cons of buying an existing business vs. starting a brand new business. The decision to buy an existing business is much different from starting a new business from the ground up, and while there is no ONE right answer that fits each person, your own clarity about your approach to business will help you make the best choice for you. Discover how your investment of time and money, as well as relationships with customers, vendors, and employees, figure into your decision to start a new business OR buy an existing business.
How to Buy a Business
Not knowing how to buy a business that is right for you could wipe you out financially. You are investing both money and time into a new business venture.