Start-up considerations

Editor’s note: Michelle Stockman works with Little Rock-based Arkansas Capital Corp. to promote entrepreneurship development around the state. Stockman earned a bachelor’s degree from Loyola University-Chicago in communications and fine arts, and earned a master’s in entrepreneurship from Western Carolina University. Her thoughts on business success appear each week on The City Wire.

The entrepreneurial spirit is exciting, uplifting and exhilarating, yet the emotions of thinking you have the perfect business idea often cause individuals to rush into a business. To help in planning the launch of that perfect business idea, consider the following:

• Put yourself in your customer’s shoes
Market research can be expensive and mysterious. While you can learn those skills or hire those with the skills, take a first step in understanding your market/customers by putting yourself in their shoes. Live, breath and feel the same things your prospects do, and you’ll have a good start in understanding if your product or service is something they will need or want.

• Make sure your customers understand your product
If your business is providing a great new product or service that solves a problem for your customers, don’t assume they are going to understand how your business will solve their problems. “New” requires understanding before market penetration will occur. Is your business prepared to lead a culture change?

• Competition is good
Regardless of what business you decide to open and operate, there will be competition for customers. Whether the customer is spending money at the grocery store rather than going to the local restaurant for dinner, consumers have options in where their money is spent. It is good news for your business if customers already spend money elsewhere for a similar product or service. This means that your business simply needs to find a way to overcome the competition for those customers rather than educate customers on why they need your business in their lives.

• It’s okay to be different
If you are starting a business in a proven market place, common practices amongst the businesses in that market are not required for your business. Be different where it makes sense as this will allow you to create a competitive advantage over your competition. How can you change the way business is done in your industry that will be well received and no one else is doing?

• Be objective about your baby
A new business is a new baby. Like proud parents, new business owners always see their business as a beautiful, can do no wrong, baby that others will love. However, some start-ups are not as wonderful as they appear to their owners.

Before starting the business, do the necessary homework to find if there will be customers to support the longevity of the business. No customers = no revenues = no business sustainability no matter how brilliant the idea.

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Stockman can be reached at [email protected]