Some business sell one specific thing, but most successful businesses have a range of related products or services that they sell to a similar target audience. The question is with so many options ‘What steps do you take to define the core services or products in your business?’
I have five key steps you can follow to help you make this key decision.
What could you offer?
The first thing to establish is what you could offer. Most people start a business in the industry they have been working in, so they understand the products or services in their market and they have the expertise to deliver a range of them. Create a comprehensive list of all the Products or Services you could offer to prospective customers. If you are already running a business offering a range of products or services make a list of what you do offer and also add in other possibilities that would complement your current offerings.
What is the demand?
Next you need to identify the demand for the product or services. If you are already running a business you can look at your sales data, but if you are just getting started then you are going to need to carry out some customer and competitor research. Asking your target audience whether or not they would buy specific products and services is a great way to gauge demand. You should also be able to find wider surveys carried out by Market Research Companies, or you could pay for this research to be carried out by professional R&D providers.
Checking out competitors will give you an idea of what is being successfully sold in your industry and maybe you will even be able to identify a gap in the market! Remember you need to look at other companies who offer similar RESULTS to you when using your service or product…not just businesses that sell the same thing as you. For example companies that sell Slimming Milkshakes are competing with Slimming Clubs and Slimming Meal Delivery services, Slimming medications – the result is the same, the product or service is different.
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What do you sell most?
Now, this only applies if you are already running a business…otherwise you will have to rely on your research and industry experience. You should divide your sales figures so that you know how much you sell of each of your products or services. You can use this data on a daily, weekly, monthly, quarterly or annual basis to know what you sell the most of.
What do you make most profit on?
Now here’s where it gets interesting. If you accurately record your cost of sales you should now be able to check which of your products or services you make the most Gross Profit on…this may not be the same as which generates the most turnover as some products and services cost more to deliver. It’s great to have high turnover, but if you are not making good profit then you are out of business.
What can you scale easily?
Finally think about which of your products or services can be easily scaled to grow your business. Small businesses tend to start with one person doing everything, at some point (if things go well) you will employ people to help deliver the products or services. Look at each one and assess which can be most easily delivered by someone else. What level of skill will your employees need to have? How much training will they need? Could you employ part time to start with, or will they need to be full time? Growing your business will be easier if your products and services are easy to scale.
Once you have decided on your core products or services everything becomes easier; marketing, sales, recruitment, operations and even finances and of course you will need to keep reassessing your core offerings to ensure they are still right….remember the cautionary tale of Blockbuster video…they could have been Netflix if they had kept a closer eye on what they were selling.
I hope this blog has given you some steps you can take to define the products and services your business offers (or will offer). If you would like more support and advice why not join our FREE business community.
By Duncan McKechnie
Join the NoLimits Business Community
Are you a business owner looking to take your business to the next level? Join our innovative community of like-minded professionals and gain access to a wealth of valuable resources, including a community portal to chat with other business owners, ebooks, business development software, and growth events that will transform the way you do business. Best of all, these resources are completely free and will be available to you forever.
But the benefits of joining our NoLimits business community don’t stop there. By becoming part of our community, you’ll have the opportunity to connect with other business owners, share insights and ideas, and build valuable relationships that will help your business thrive. Don’t miss out on this amazing opportunity to supercharge your business and join us today!