You must define your product. What exactly do you do? People will ask this question often. It’s hard to answer the where, when, how and who questions without first knowing your what!
Our talents, abilities, thought processes and passions often helps us decide what business we want to start. For example – if you’re good at various trades, outgoing and super sociable or even have knowledge specific to an industry, then a service industry might be good fit. If you’re a creative person whose good at developing ideas, likes the indoors and loves shopping, then maybe a product or retail-based area is a better idea.
Many times, good business ideas come when we see a certain need that’s going unmet. Other times, they start when people show an interest in what we are doing or desire what we have to offer. Sometimes it’s an area other people might not even know they need.
In business terms this is called our Target Market.
To define your product you must answer the,”What do you do” question.
My first real company was started by accident, literally. It was early 1990, and I was a youth pastor helping our missions team sell pancake breakfast tickets in front of a local grocery store. It had been raining heavy, and the awning rain gutter at the store entrance was leaking. A customer was running in, from the rain, and slipped and fell right in front of me. The manager came running out to apologize (and make sure there was no law suit).
After the customer went inside, the manager told me about his issues having it fixed. He explained the “big boys” said the job was too small, and the “small guys” did lousy inconsistent jobs. As he rambled on, I suddenly interrupted and said, “Hey no problem, I could fix it.”
He looked at me quizzically, and said, “I thought you were just a youth pastor, do you have a business on the side?” At first, I was speechless. Then suddenly I blurted out “I guess I do now”.
And that’s how my first company, Maintenance Hawaii, was born. I found my target market (and company) by accident. Over the next 10 years, it became the largest (non-licensed contractor) building repair companies in East Hawaii. The reason was because of the business model and managing our operational efficiency. This means we focused on providing service for the target market of small electric, plumbing, roofing, interior/exterior repair and remodeling jobs too small for licensed contractors, but too complex for the small handyman operations. On that day, I found my why and my what. It was to fulfill any repair need for people’s homes and businesses that the ‘big companies’ were willing do.
In a nutshell, our small business second step is to define your product so you can basically determine what people want, and how we plan on fulfill this need.
Knowing if your idea has merit is easier when you define your product or services. 4 questions to ask.
- Is there a market for my idea?
- Who’s in the market and am I able to reach them?
- What exactly do they want/need from me or my product?
- What do they think about and expect from my product?
When finished, try brainstorming all the different approaches you could take. List all the things, people and money needed to make this happen for your target market. Run your ideas by people you trust and respect. If it seems workable, you could try something on a small-scale, or go full on. Either way, you’ll have to be fully committed and willing to see things through. If not stay at your day job, and leave it to someone else.
Remember Your What Evolves Over Time.
As new business owners we usually start with a specific customer in mind, and the general idea of how we serve them. But even though it may start with a specific customer demographic, we will need to branch out and evolve over time. This means when you tweak your service, product or even location, you do it with your customer in mind.
We do this through diligence in market research, our own professional development, and staying in continual contact with customers, suppliers, subcontractors, employees and those with intimate knowledge of both your customers and potential customers. In the end your product will also determine your accounting methods, need for employees, facility requirements and other changes. Bob Dylan sang a song “these times are a-changing”. And in today’s fast paced interconnected world times change even faster.
Here are a few good articles
What to Know About Your Target Market – ThriveHive
5 tips for entrepreneurs on how to choose between product or service – ZDNet