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How To Start A Successful Business With No Money? Business | Executive Coach
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In fact, our research specifically proves 8 Critical Success Factors for small & medium-sized businesses.
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Or https://www.members.bestbusinesscoach.ca/success-research/ for more on the research behind it.
How to start a successful business with no money? Some people may not agree with me on this. The easiest way to start a successful business with no money is: Get out there and start talking to people who are potential clients. The first thing you need is customers. A business is: A group of people who solves the problems of another group of people.
They solve a problem. The problem is the market.
Not demographic. The demographic is the group you're helping with the problem. But there are many demographics having the same problem. So, don't focus on the demographics. Focus on the problems you're trying to solve. To start a successful business with no money, Talk to people. Find out who is having this problem. Get some sort of up-front commitment from them. Like a down payment. Something to get them to commit and put their money where their mouth is. To say: “Hey I will invest in you & your business to help me solve this problem.” When you get payment, you have a business. Is it a successful business? No. Right? Ideally, the success of the business gets measured through years of experience. Once you've got someone who's agreed to pay you to solve a problem. Now you have to make sure you can deliver the result they paid for. Because people pay for results. So you have to consider what are the results they're paying you for? How do they want the result delivered? Communicating with them ensures their satisfaction. Plus make sure you can comply. Then you find a way to do it at scale. [fix the problem for large volumes of people at the same time]
To start getting a few transactions. Get your first 10-20-30 Sales. You have to talk to people and get out there. Figure out where are these people are having this problem? Talk to them. Figure out if they're willing to pay money to have their problem solved. Figure out if they're willing to pay money to have YOU solve their problem. Once you have a commitment from them, do what you need to get the results. When you have the results, make standards around it. To help maintain quality control. Then you need to start building a team. I like to use this analogy as an example. If you were a taxi driver in the pre-internet era, In the beginning, you got to find people. People willing to pay you to drive them places. You have to know where these people are. Are they going to work? School? Coming or going from the airport? Train station? Bus station? What schedule do they follow? What kind of experience do they want? Do they want a smoking or a non-smoking taxi? These are things you only find out if you're talking to people. You have to get out there and do it. To get started. Using this example, once you've got people. Your day is full of customers.
Next you focus on building a business around this. How do you do that? Of course, you can’t do it if you're only the driver. You're going to have to hire some help. You might take a cut to your income. But it's an investment in building an actual business. The people you hire will take over driving for you. And yes, you'll pay them. You're buying your time back. For you to grow your business. To expand locations. To have more people drive your cars. [You'd have an estimate for how many customers are available now] You invest in the development, the systems, and standards. To maintain quality control. You have to consider the factors relating to customer experience. Because each has a significant effect.
Now you've got something up and running. Maybe you're trying to build a team. Or building software. Whatever you can to deliver consistent results. Then you need to scale.
So I’ve done research. At the time of this recording, last year in 2020. I spent about $50,000 paying researchers to help me. We went through all the scientific literature. Studies on small and medium-sized businesses. The question was: What are the critical success factors for small and medium-sized businesses? We've come up with 8. These 8 are the following: 1. Self-efficacy. Your ability to be effective. It means when you wake up in the morning. Do you effectively use your time and energy? To get the things done. Is your team effective with their time? Are you an effective communicator? Are you an effective leader? Self-efficacy plays an important role. If you wake up every day & your to-do list never get done. You're not going to achieve anything. Like a car stuck in mud. You are not moving forward. 2. Strategic Planning. It's a critical success factor because you need a strategy to follow. Hope is not a strategy. Take into study the market situation and recent developments. What competitive products are coming out? What are other people doing? Are you building a business in an industry going obsolete?
Strategic planning helps aim your business success trajectory.
3. Market Intelligence/ Market Research. You have to figure out: Who? What? When? Where? Why? How?
4. Marketing Strategy. Which is different from research or sales. It is a communication strategy. To help your name & your brand get known. Get found. They say good marketing can sell a non-existent product. You don't want to, but the message is: Good marketing can sell a non-existent product. Bad marketing cannot give out free gold.
You need to have a marketing strategy. To help find people who have the problem you will solve.
5. Sales Strategy & Skills. You’ll use these to help potential clients with their buying process. To make a decision and a commitment in getting a result. So we have 1. Self-Efficacy 2. Strategic Planning 3. Market Intelligence 4. Marketing Strategy 5. Sales Strategy / Sales Skills
Then the 3 left.
6. Business Operations Systems This can be meeting rhythms. It can be your legal department. It can be your communications flow and channels. Where you store your resources. The glue holding people together. How do you hire these people? These are all operations type things.
7. Money Management. To a business, money is like gasoline is to a car. Money management is an important part to a successful business.
8. Business Intelligence. It’s feedback loops on how you're doing, How you’re doing compared to your competitors. How your customers think you're doing. How effective your team is. It's the feedback loop on how your business works. It's like a mirror showing how you look.
So those are the 8 critical success factors.
We did identify a 9th factor. It was government & economic conditions. But those are beyond your control. So are little to no use for your business. That's why we focus on the 8 critical success factors. These are the things you can control.
For more information on these 8 critical success factors, You can go to bestbusinesscoach.ca.