How do you start a business?
A simple success formula
As a business coach for new solopreneurs, the number one question I hear is “How do I start a business?” That’s a big question, but I think it’s also a subtly wrong question.
When people say things like “how do I start a business?” I think they actually mean something a bit different. I think what they really want to say is, “how do I start a successful business?”
How do I start a successful business?
One extra word makes a difference. When you add “successful” to the question it transforms the answer. And amazingly, the answer gets a lot simpler.
Here’s the starting formula for a successful new business:
[Specific group of people] + [significant problem or need] + [a clear solution to that problem] + [a way to reach them] + [great messaging]
There are more factors involved (for example financial factors), but these are the five foundational elements that I see most new business owners struggle with.
A specific group of people with a specific problem
Let’s unpack this a bit. The first half of the equation is about people, problem, and product.
It starts with a specific group of people. If we use marketing-speak, this is your ideal customer or ideal client avatar (ICA). This focused target group is important for marketing, because if you try to market your product to the entire population of North America (579 million!) or Europe (746 million) or Asia (4.6 billion) you will be a drop of water in an ocean of products. Your marketing will be lost in the sea. But if you target a specific group of people you have a chance of being heard.
On top of that, specific groups of people have specific problems or needs. Your solution is your product or service. For you, specific problems are specific opportunities.
I’ll add one caveat here: Your ideal customer’s problem needs to be something that they are aware of and actively trying to solve. If they don’t know they have a problem, or if the problem is tiny in comparison to other things in their life, then you will have an uphill battle trying to sell to them. So if you’re trying to launch a new business and you want your life to be a lot easier, focus on a problem that they know they have and are already trying to solve.
Solve that, and you’ve found your product or service.
Reaching them
The second half of the success equation is about getting your product or service into the minds and hands of potential customers.
If people don’t know about you, they can’t buy from you. You might have the most perfect solution to their problem or need, but it’s pointless if they never hear about it. You need to figure out how you can connect with potential customers. What marketing channels will let you reach them?
Consider: Where do they spend their time? What do they pay attention to? How can you be there?
Once you’ve figured that out, how do you talk about their problem in a way that makes them stop scrolling and pay attention to you? How do you talk about your product so that they get excited? The best products can fall flat when their marketing copy falls flat.
One last step
Oops, our formula had five foundational elements for a successful business but there’s actually one more worth talking about.
There’s another step that can make all the difference if you’re starting a new business: Test the waters!
Before you make big investments in your new business, make small investments to test your idea. You have a target group in mind, a specific problem, a great solution, and the start of a marketing strategy. What happens if you reach out to a few people in that target group? Do they get excited and buy?
Go out and try to deliver your product or service to a few ideal customers using the channels and messaging you’ve identified. If people jump to buy that’s a strong signal that you have a viable business idea. And if they don’t? That’s probably discouraging, but it’s also okay. Businesses often need to iterate on their Plan A to find the perfect combination of ICA, problem, solution, and marketing strategy. Try tweaking one element at a time until you find a perfect combination.
Launch!
If you’ve created a rock solid business foundation, you’re ready to launch. You’re ready to take your business idea and build, build, build. You’re ready to go full steam.
The path to starting a *successful* business
To sum up, for most of us the goal isn’t just starting a business — it’s starting a successful business. And successful business tick the same boxes:
- A clear, well-defined target customer
- A significant problem or need
- A perfect solution to that need
- A way to reach target customers
- A way to get customers excited about the solution
So if you’re dreaming of launching a business but don’t know where to start, or if you’ve been trying to get one off the ground for a while without luck, work your way through the formula: Customer + Need + Solution + Channels + Message. Along the way, try small tests to see if you’ve found the perfect combination, and keep iterating until you do.
Would this help? Want an even more detailed plan to start your biz? You can get my free “new business roadmap” here!
Corbet Fawcett is a solopreneur business coach who helps people make the jump from unfulfilled employee to thriving entrepreneur. Get more business tips and resources on Facebook.
