Business Solutions

It is impossible to explain and project what to expect with one recession by looking at the causes, affects and methods of recovery of another and come up with a magic formula for stimulating the current global economy back out of the recession or depression, because there are so many different moving parts that might play a significant role in one recession and be non-existent in another, but what we can say with certainty is that economic conditions are typically worse than what is seen on the surface.

Although thorough analysis of the real economic conditions shows continuing erosion in many sectors of the U.S. and Global economies and despite shrinking markets, new and innovative Entrepreneurs are entering the global market in increasing numbers each day to take advantage of new identifiable opportunities present in the market, and it is these global entrepreneurial strategies and spirit that will be the driving force of the global economic recovery.

When examining the entrepreneurial market strategies in general, the hardest task facing Entrepreneurs that are planning to start a business is building a loyal base of customers, since many potential customers already work with other more established businesses, and they are not interested in risking developing a new relationship working with a new business, and this is just one of the many challenges that are typical and to be expected in any start-up situation that Entrepreneurs need to be keenly aware of, along with the tasks of meeting and overcoming the challenges while building the businesses reputation at the same time.

As an Entrepreneur, you always need to put yourself in the potential customer’s mindset: If you were to consider giving your order for services or products to a new business, then ask yourself what are the most important business factors you would use to make your decision, and what would have to be part of the conversation in the way of statements and promises needed to persuade you to commit to trying a new business or firm, and by focusing on development of the most solid answers you can to these questions, the better your new business will perform in the most critical initial start-up stages.

What all this means is that you have to do your homework and put together solid facts from your research, an important point that can’t be overemphasized, and a simple way to begin is investigating your competitors by looking at their websites, Facebook pages, Twitter usage and activity, as well as MySpace and other social media platforms, as this has the potential of freely giving you access to a lot of detailed information, from their mission and vision statements, to what they think their product and service attributes are, possible testimonials, geographic areas served, and other important insightful information. Study the results of your research and adopt techniques and practices that work for them, all the while developing business strength and associated customer leverage with positive practices that compare very favorably to their negatives.

As part of developing market strategies for competition, don’t hesitate and forget to ask potential customers about their personal experiences with your competitors, since they are general forthcoming and will be able to give you some insightful information about what they like, and especially dislike, providing you with extremely valuable feedback and information that can be incorporated into your mission and vision for the business, and remember, it is critical for you always to either match or exceed the services of your competition, anything less is unacceptable, since potential customers won’t do business with your new business without a powerful incentive that causes them to take the action you want them to, and not only start doing business with you, but become loyal to your business.

To instigate the customer feedback that you gather, start by adapting their responses to your marketing strategies, for example, if you determine you may need to tailor your operational hours to when the majority of customers would use or visit your business, or require service, and this might be a courtesy you can implement and use in your initial marketing message that shows you value what the customer’s think, and it matters in terms of building your customer base and keeping their business.

Another important point to remember is about human nature and prospective customers, as they like nothing better than getting something for “free” (Even FREE has Important Value), and what you might receive in return, like the customer’s business, will pay off with interest in the long run, for example, if you are starting a barber shop business, offer a free haircut for every ten paid haircuts for the first year, and this can be a relatively small expense to you, but prove to drive both a lot of new business to build your customer base, and keep existing customers returning while strengthening customer loyalty.

It is also critical for Entrepreneurs to remember that without money there is no business, and to get a new business started you need to make sure you have adequate funding, which includes how much money you currently have available to you and how much you need to raise, as statistics show that businesses with less than $50,000 in funding have a higher failure rate, since many times they don’t have a solid capital foundation to build from, and find it extremely difficult to overcome additional unforeseen capital expenditures that always seem to occur.

Entrepreneurs should include everything addressed so far in a formal business plan, which is an extremely critical entrepreneurial tool that should be developed before you start the business, and updated annually to maintain maximum effectiveness. Effective and well thought out business plans include a thorough analysis of both the Entrepreneur’s and businesses strengths and weaknesses, and plans to overcome any weaknesses identified, with clearly defined strategies for marketing and production or services.

A proven fact throughout history is that the Entrepreneurs with the most realistic outlook and strategies will have the best survival chances for their start-up business, and remember, a clear, concise, and above all, honest vision of expectations, along with a backup plan for any weakness is best, and it can make the difference between entrepreneurial success and failure.