Starting Up Module 4
Transcript of Starting Up Module 4
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Starting a Business -The No Nonsense Guide
Module 4: Finding and keeping
customers
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Module 4: Finding and keeping customers
4.1
4.1
4.2
4.2
4.3
4.3
4.4
4.4
4.5
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4.6
4.6
4.7
4.7
4.8
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4.9
4.9
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What will your business do? 2
Research the market 4
Strengths and weaknesses 10
Market risks 13
The marketing mix: the 4 Ps 14
Sales 21
Providing excellent customer service 22
Glossary 24
Action plan 25
This module will help you to:
understandthemarket foryourproductorservice refineyourbusinessidea planhowyoullreach
yourcustomers sellsuccessfully.
Youllalsohavetheopportunityofcompletingthepartsofyourbusinessplanthatrelatetoyourmarketingandsellingyourstrategyforfindingandkeepingcustomers.
What you will learn and understand asa result of working through this module
How to use the module
Thisisaself-helpmodule,withbothreferenceandworksheetmaterialtohelpguideyouthroughstartingasuccessfulbusiness.
Youwillfindiconsthroughoutthemoduletohelpguideyou:
Tipsforhowtomaximiseyourbusiness
Colour-codedlinkstoothermodules
LinkstotheBusinessLinkwebsite
Anactionplanattheendofthismoduletohelpyouplanyouractivityforstartingup.
Worksheetswithlinkstothebusinessplaninmodule6.
Linkstotheessentialbusinessplan
Linkstothecomprehensivebusinessplan
Ifyouareusingthemodulestocompleteabusinessplan,seemodule6forwhichplanisrightforyou.
Starting a Business - The No Nonsense GuideisproducedbyBusinessLinkaspartofitsStartingaBusinessservice.BusinessLinkprovidesimpartialadviceandinformationtohelpyoustart,growandsucceedinbusiness.Helpandsupportisalsoavailableonline,throughlocalworkshopsandoverthetelephone.Visit businesslink.gov.uk orcall0845 600 9 006,forfurtherdetails.
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Wh
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Whatwillyourbus
inessdo?
Theprocessoffindingandkeepingcustomers(knownasmarketingandsales)startswithfindingoutwhattheyneedandhowyoucanmatchyourproductand/orservicetothoseneeds.Thisunderstandingwillenableyoutoidentify
therightgroupsofcustomersandtargetthemwiththerightproducts/services.
Thinkofmarketingascreatingtheopportunityinthefirstplace,andsellingastheconversionofthisopportunityintoasale.
Tofindandkeepcustomers,youllneedtohaveaclearvisionoftheproduct/serviceyouregoingtosellandwhoyouregoingtosellitto.Youmustknowhowitwillstandoutfromthecompetitionandwhetheryoucansellitatapricethatwillgiveyouenoughprofittobeworthwhile.Youmaynotknowtheanswerstothesequestionsyet,butthismodulewillhelpyoutodecideexactlywhatyourquestionsareandthebestwaytofindouttheanswers.
4.1 What will your business do?
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4.1
What are the features and benefitsof your product/service?Successfulbusinessesfocusonthebenefitsthattheirproduct/servicecanoffercustomers,ratherthantheirfeatures.
A featureisanattributeoftheproduct,suchasitssize,weightordesign.
A benefitiswhatthefeaturecando
forthecustomer(butrememberit'sonlyrelevantifit'ssomethingthatthecustomerwants).
A saucepan makes a good example:Feature:non-stickcoatingonsaucepan
Benefits:
fooddoesntsticktothesurfacetastierfoodsaveswork.
Worksheet: Your business ideaSumupyourbusinessideahere.Ifyourenotentirelysureaboutit,dontworry. Youllhavethechanceofreviewingitlaterinthemodule.
What your business doesWritedownwhatyourproducts/servicesfeaturesandbenefitsare.
Product/service Features Benefits
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Research
themarket
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Marketresearchisallaboutfindingoutwhatpeoplewillbuy.Itseasytoassumethatpeoplewanttobuywhatyouhavetosell,buthowdoyouknowthattheywill?Doingmarketresearchisessentialforanynewbusiness.
Showingthatyouvedoneresearchisalsooneoftheelementsthatbanksorinvestorswillbelookingforinyourbusinessplan.
How to do the researchSomepeoplemayprefertohireamarketresearchagencybutresearchisntdifficultornecessarilyverytime-consumingtodoyourself.Theresavastamountofpublishedresearchoutthere,bothspecificandgeneral.Someofitisfree,someyoullhavetopayfor,someyoucanborrowfromlibrariesandsomeisavailablethroughtheInternet.
Youcanalsogooutandcollectinformationby:
makingupyourownsurveysor
questionnairesandconductingthem face-to-face,byphone,emailor sendingthemthroughthepost holdingfocusgroups,discussions andinterviews observation-watchingwhatpeople buywhentheyreshoppingorvisiting exhibitions,orcountinglorriesleaving yourcompetitorspremises.
Youdonthavetotakemonthsoffworktodotheresearch.Youcouldreduceyourriskbydevelopingyourbusinesspart-time,startingmoreslowlyorreducingtheneedforfinance.
4.2 Research the market
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Themoreinformationyouhave,thebetterplacedyouwillbetoturnyourbusinessideaintoasuccess.
The marketYourfirstgoalistogainanunderstanding
ofwhatshappeninginthemarketthatyouwanttotarget:
whatsthetotalmarketbusinesscustomers,consumers,UKonlyoroverseasaswell?
isitgrowingorshrinking? arethereanydifferencesfromregion toregion? whataretheseasonalinfluences? isitawelldevelopedmarketorare new,competitiveproductsentering? isitpronetofashionsandshort-term changes? isnewtechnologylikelytoalter themarket? whatchangesmayaffectdemand? arethereotherproducts/servicesout therethatareessentiallythesame asyours?
Your customersNext,findyourcustomers.Marketresearchwillhelpyouidentify:
whoandwhereyourpotential customersare howmanyofthemthereare thecharacteristicsofdifferentgroups theirbuyingpatternswhere,how,howmuch,when,why.
Onceyouhavethisinformation,youneedtoplaceyourcustomersintogroupssothatyoucanidentifythemostpromisingonesandfocusallyourmarketingeffortsonthem.
The competitionResearchingthecompetitionisanexcellentopportunitytocompareyourideaagainstwhatotherbusinessesareoffering.
YoucandiscoverwhoyourcompetitorsarefromsearchingontheInternetforsimilarproducts/services,fromlocalbusinessdirectories,yourtradeorprofessionalassociationoryourlocalChamberofCommerce.
Onceyouveidentifiedwhoyourcompetitorsare,readtheirwebsitesandbrochures,leafletsorflyers.Iftheyreanonlinebusiness,askforatrialoftheirservice.Ifyourcompetitorpublishesone,readtheirannualreport.
Speaktoyourcompetitors.Phonethem
toaskforacopyoftheirbrochureandapricelist.Enquirewhatanoff-the-shelfitemmightcostandwhethertheresadiscountifyoubuymorethanone.Thiswillgiveyouanideaatwhichpointacompetitorwilldiscountandatwhatvolume.Phoneandface-to-facecontactswillalsogiveyouanideaofthestyleofthecompany,andtheinitialimpressiontheymakeoncustomers.
Your USP (Unique Selling Proposition)Makingyourproduct/serviceuniqueordifferenttothecompetitioniswhatsknownasyourUSP,orUniqueSellingProposition(orPoint).Thiscouldbegoingforagapinthemarketsomethingthat
nootherbusinessisofferingoritcouldbecreatingastrongbrandthatyourcustomerswillrelateto.Itcouldevenbesomethingassimpleasofferingfasterservice.
Find out moreMarketresearchandmarketreports:businesslink.gov.uk/startmarkets
Knowyourcustomersneeds:businesslink.gov.uk/startcustomer
Understandyourcompetitors:businesslink.gov.uk/startcompetitor
4.2
Howareyougoingtoperformyourcompetitorresearch?Putanyactionsintoyouractionplan.
Howareyougoingtoperformyourmarketresearch?Whoareyougoingtotalktoandwhere?Puttheseactionsintoyouractionplan.
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Research
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Worksheet : Your market researchFromtheresultsofyourresearchintoyourmarket,writedownthetrendsthatyouhaveidentified,andwhatresearchyouvedonetocometothoseconclusions.
The trends in your chosen market are:
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2.
3.
4.
5.
How you know this:
Profiling customersWritedownwhatyouhavefoundoutaboutyourcustomers.
The customer groups you will be selling to are:
Your customer research has shown what your customers want is:
How you know this:
Number of customers you expect to win in each group and what they might pay:
Name: Richard RivlinCompany: Bladonmore
RichardRivlinexplainshoweffectiveuseofmarketresearchhelpedhimdevelophisfinancialtrainingandmediabusinessBladonmore.What I didOveraperiodofthreemonths,Iwentonavirtualfact-findingmissionusingtheInternet.Ifyoupersevere,youcanfindanincredibleamountofqualityinformationforfree,includingmarketreportsandexpertanalysis.Businessconsultantswebsites,industrybodiesandsector-leadingcompaniesareagoodplacetostart.
Throughoutmyresearch,Iwascarefultoavoidanalysisparalysis.Theresnopointhidingbehindpilesofmarketdataandthinkingyouhavedonesomethingconstructive.Youhavetousetheinformationtodevelopyourbusiness.Havingclearobjectiveshelps.Iwantedtoknowthesizeofthemarket,tolearnfromcompetitorssuccessesandmistakesandtounderstandwhatpotentialclientswant.
Group Number of customers Price they might pay
Heres how I made the mostof market research
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Research
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Case study
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Profiling competitorsWritedownthenamesofyourcompetitorsandtheirprofilesandhowtheycomparetoyou
Competitor name Strengths Weaknesses
How you can improve on their offer and/or price:
What makes your business different your USPWhatmakesyourproduct/serviceuniqueordifferentcomparedwiththecompetition?
Heres how I exploited a gapin the market
Name: Jeff SacreeCompany: Gecko Headgear Ltd
What I didAsasurfer,Icouldseethepotentialforahelmetthatwasbothlightweightandheat-retaining.Iwasalsolookingforwaystodiversifymyproductoffering,sincesellingsurfboardsishighlyseasonal.Idesignedandmadethefirsthelmetformyselfbuttheideasooncaughtonwithothersurfers.
However,surfingisarelativelysmallmarketandIbeganwonderingifIcouldbasethewholebusinessonmyhelmetdesign.IresearchedotherpotentialusersandaconversationwithalifeboatmanledmetoapproachtheRoyalNationalLifeboatInstitution(RNLI),whowereimmediatelyinterestedinusingaversionofthehelmet.
Plan ahead and get fundingAlthoughIwasalreadymakinghelmets,workingwiththeRNLIwasadifferentballgame.Thehelmettheywantedhadtobeadapted,testedandcertifiedbeforeIcouldstartsellingit.Ialsoneededtotakeonstaff,whichmeantthecompanyneededinvestment.IgotabankloanonthebackoftheRNLIsinvolvement,whichwasthentoppedupatvariousstages.
Keep innovatingWhentheRNLIcontractfinallybroughtussuccess,wewerecarefulnottorestonourlaurels.Todate,wevegonethroughtendifferentversionsofthesafetyhelmet,refiningitinlinewithcustomerfeedbackeachtime.Thehelmetcannowacceptarangeofadd-ons,suchascameras,torchesandcommunicationsequipment,accordingtocustomerrequirements.
Partnershipswithsuppliershavebeenanotherkeytosuccess.Forexample,weveworkedwithamanufacturertodevelopa
newadhesivethatcanwithstandsaltwateruse.WevealsopartneredwithTheWeldingInstitutetofindbetterwaysofweldingsectionsofthehelmettogether.Thishashelpedusinnovateandkeepaheadofcompetitors.
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Everybusinesshasitsstrengthsandweaknesses,anddoingthemarketresearchmayhavemadeyouthinkaboutyours.
ASWOT(Strengths,Weaknesses,
Opportunities,Threats)analysisisagoodwayofhelpingyouidentifythegoodthingsaboutyourproductorservice,possiblemarkettrends,andanythingthatletsyoudownorcouldbearisk.
4.3 Strengths andweaknesses
TipIfyoucompareyourstrengthsagainstyourcompetitors,theremaybeoneormoreareaswhereyoureparticularlystrongincomparisontothem.Ifthisalsohappenstobesomethingthatyourcustomersvaluehighly,thenyoureontoapotentialwinner.
Strengthsandweaknesses
4.3
Name: Debbie PierceCompany: The Bury Black PuddingCompany
DebbiePierceexplainshowshesetupthee-commercesideofherLancashire-basedfoodcompany.
What I didWehaveastallatBurymarketandwesetupthewebsitesowecoulddelivertopeoplesdoorsandreachthosewhocouldntmakethejourneytoBury.
Alocalwebsitedesignbusinesshelpedusputthesitetogether.Wesatdownandthoughtaboutwhatweneededonit.Youneedabitofhistoryaboutthebusiness
andwewantedtoadvertisethatthestallwasthereforpeopletovisit.Ialsowantedtogetasmuchinformationaspossibleabouttheproductinandsomenicepicturesthatuploadedinstantly.Ithinkallofthesethingshavehelpedusmakeonlinesales.
How planning helped uscreate a profitable website
Worksheet: SWOTWritedownpotentialstrengths,weaknesses,opportunitiesandthreatsintheseareas:
Your customer service
The benefits that your product/service offers
Your specialist skills, equipment or expertise
Your business image
The price of your product/service
Your systems: quality control, accounting, production and distribution
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SWOT analysisTranslateyouranswersintoaSWOTanalysisbyplacingeachintheappropriatebox
S strengths W weaknesses
O opportunities T threats
Marketrisks
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Whatcanyoudotomaximiseyourstrengthsandopportunitieswhileminimisingthreatsandweaknesses?Putanyactionsintoyouractionplan.
AftercompletingyourresearchandSWOT,youshouldnowbeawareofeventsthatmayimpactonyourbusinesssectorormarket.Thesechangesaremarketrisks.Youneedtoidentifythesepossibilitiesandhowyouwilldealwiththem.
4.4 Market risks
Worksheet : Managing market risks
From the results of your research and SWOT, write down the risks thatyou have identified:
egcustomerswishingtobuymoreenvironmentallyfriendlyproducts
How you would manage those risks so that they become less of a threat:
egadjusttheproductdesigntominimiseenvironmentalimpact
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Themarketingmixisthecombinationofallthethingsyouneedtothinkabouttomarketyourproduct/servicesuccessfully,andtheyreoftenknownasthe4Ps:Product,Price,PlaceandPromotion.Allfourelementsmustworktogethertogive
aconsistentmessagetothecustomer.
Product (or service)
makesureitwillsatisfythecustomers needsorwants makesureitcanbeproduced anddeliveredataprofit makesureyourcustomerservice isright differentiateyourproduct/service fromyourcompetitors betotallyclearaboutwhatyoure hopingtosell.
Agoodproduct/serviceissomethingthatsatisfiesthecustomersneedorwantsaswellasbeingsomethingthatyoucanproduceanddeliverataprofit.Youneedtomakesurethatyourcustomerserviceisright.Itsessentialthatyoucan
differentiateyourproduct/servicefromthatofyourcompetitors.Indoingso,youalsoneedtomakesurethatyouaretotallyclearaboutwhatyoureselling.
4.5 The marketing mix: the 4 Ps
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PriceAgoodpricingstrategyshouldbebasedonyourmarketresearch.Businessesneedtoknowwhattheircustomerswillbepreparedtopayfortheirproductratherthansimplyworkingoutthecostand
addingontheprofittheywanttomake.
Aspartofyourresearch,compareyourproductswithequivalentcompetitiveproducts.Thiswillhelpyoudecidewheretopitchyourprices.
PlaceThesedays,placemeanseverywhereyourproduct/serviceisvisibletopotentialcustomers.Successwilldependonyourproduct/servicebeingavailableintherightplacesattherighttime.Itsnogoodsellingonlyfromyourowncompanywebsiteifyourcustomersareallbuyingfromanauctionwebsite.Itsnogoodbeingonamarketstallifyourcustomersareallinaprestigiousdepartmentstore.
Youneedtofindoutwhereyourpotentialcustomersarebuyingnow,andthen
decidewhatyourroutetomarketwillbe.
Youcould:
selldirecttothecustomer- throughpersonalselling,mailorderor theInternet sellindirectlytothecustomer-through wholesalers,retailersoragents.
Youmaywellusemorethanoneroute.
Online business: YoumayhaveidentifiedsellingviatheInternetasoneofyourroutestomarket.Settingupaprofitablewebsiteisntascomplexanddifficultasmanypeoplethink.Nordoesithavetobeexpensiveandtime-consuming.
Startbysortingoutwhyyouneedawebsite,whoyoureaimingatandwhatyouwanttoachieve.Isitanonlineversionofyourbrochureorasellingtool?Doyouwanttobeabletotakepaymentsonline?
TipTipsforonlinetrading:
answerqueriespromptly makesurethewholeofyour teamknowswhatsonthesite haveareliablewebhost publiciseyoursite makesureyouhaveasecure serverifyoullbetradingonline reviewyoursiteregularlytomake surethatproductsandinformation onpricesareuptodate.
PromotionCustomersmustbeabletoknowaboutyourproductsandunderstandthebenefitstheywillbring.Raisingawareness,creatinginterestandmakingpeoplewantyourproduct/serviceareall
importantpartsofpromotion.Youneedtocommunicateintherightwaywithprospectivecustomerssothattheyreencouragedtobuyyourproductratherthanacompetingone.
Topromoteyourproduct/servicesuccessfully,youllwanttospendsometimeplanningyourimageandbrand.Imageisthewaytheworldseesyourbusiness.Itwillreflectthewayyouvechosentopositionyourproduct/serviceinthemarket,soyouwillneedtoconsidereveryaspectofyourimage,includingyourlogo,stationery,signsandpublicity.Branddescribesthepersonalityofyourcompanyandproducts/services.
Find out more
Priceyourproductorservice:businesslink.gov.uk/startprice
Identifypotentialsaleschannels:businesslink.gov.uk/startsaleschannels
Developane-marketingplan:businesslink.gov.uk/startinternetmarketplan
Branding:thebasics:
businesslink.gov.uk/startbranding
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Case study
Heres how I got my greatnew product in front ofcustomers
Name: Sam TateCompany: Sprue Aegis plc
SprueAegisFireAngelisaninnovativesmokedetectorthatfitsbetweenalightfittingandthebulb,takingitsenergyfromthemains.FireAngelchargesupitsrechargeablebatterywhenthelightison-andrunsoffthebatterywhenthelightisoff.Thecompanyhasntlookedbacksinceconvincingonehighstreetretailertosellthedetector.Itsnowstockedinaround6,000outlets.
What I didWespentmonthsdiggingoutmarketresearchreports,talkingtotheFireBrigadeandthegovernmentdepartmentresponsibleforfiresafety.
OnceweconfirmedtheFireAngelwasavaluableidea,Iwentoutontothestreettoseeiftherewasamarketforit.Webasicallyjuststoppedpeople,showed
themtheprototypeandaskedasetlistofquestions.Wealsolookedcloselyatourcompetitorsproductsandwhotheirmarketwas.
WeinitiallyworkedoutasalesstrategyinvolvingtheInternet,directmarketingandadvertising.However,wesoonknewonacost-per-salebasisthiswouldntbefeasible-wewouldhavesoldlessandhadtochargetwiceasmuch.Wethenrealisedanidealwaytoreachconsumerswhowantedaquicksolutionwasthroughsupermarkets.
Mostsmokedetectorsretailatbetween5and10.Weknewwecouldchargeapremiumbecausefittingthealarmisassimpleaschangingabulb.Itdoesntneedabatteryanditlastsforuptotenyears.
Wesetthepriceataround20buttheretailerobviouslytakesamargin.Remember-itsalothardertoputthepriceupthandropitdown,sodontgointoocheaply.
Ittookthreeyearstogetourproducttomarket.Alotofthistimewasspentondesignandsafetytesting,butittook
18monthsoftalkingtoonewell-knownhighstreetretailerbeforetheyagreedtostockthealarm.Onceyoureintherewithoneretailchain,itgetsmucheasiertoapproachothers.Butyoudefinitelyhavetobepersistenttosucceed.
Worksheet: The marketing mixPricing what you doNotedownhowyoucalculateyourprices,howtheycomparewiththecompetition, andthereasonsforthedifferencesbetweenyourpricesandyourcompetitorsprices.
How do your prices compare with the competition?
Product/service Your price Competitor price
Reasons for the differences between your prices and your competitors prices:
Isthereanythingyoushoulddotomakeyourpricemorecompetitiveortomaximisethereasonsforpricedifferenceswithyourcompetition?Putanyactionsinyouractionplan.
Worksheet: Your brandDescribethepersonalityofyourcompanyorproductsusingthewordsyouwantcustomerstousewhentheycomeintocontactwithyourbrand.Thewordsshouldntdescribeyourproduct/service,morethefeelingthatpeopleshouldhaveaboutit.Youmightchoose wordsliketraditionalormodern,understatedorbold,friendlyormysterious,homelyorprofessional.
Usethesebrandwordstohelpinformyourresponseforthemarketingmixworksheets.
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Worksheet: Promoting and advertising your businessHowandwherewillyoupromoteyourproduct/service?Promotionmeansalltypesof communication,andcouldincludeadvertising,leaflets,brochures,exhibitions,telesales,face-to-faceselling,sponsorshipandawebsite.
Whatneedstobedonetocreate,distributeandorplaceyourpromotionalitemsandadvertising?Putanyactionsinyouractionplan.
Worksheet: Routes to marketHowwillyouselltocustomers(egthroughashop,wholesaler,dealerorwebsite)?
Whatdoyouneedtodotosetupyourroute(s)tomarket?Putanyactionsinyouractionplan.
Worksheet: Review your offerTheresultsofyourmarketresearch,theSWOTanalysisandthe4Psmayhavegivenyousomeideasabouthowyoucantailoryouroffertomakeitmoreattractivetoyour targetcustomers.
Should you be targeting your product/service at other groups of customers to the onesyou originally thought? If so, why?
Should your product/service offer other benefits to customers than the one(s)you originally thought? List these:
Is your price too low/high? Make any revisions to your pricing structure.
What new ways can you think of to make your offer better than the competition?
Would there be better routes you havent considered? What are these?
Isthereanythingyoucandonowtoimproveyour4Ps?Addthesetoyouractionplan.
4.5
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Sellingisoneofthebiggestchallengesformoststart-upbusinesses.Itsfrequentlythemake-or-breakfactor.
Rememberthatwhetheryouresellingamobilephoneorbusinessinsurance,the
basicapproachisthesame-concentrateonhowyoucouldmakelifeeasierforyourpotentialcustomer.
Onceyouknowwhatthecustomerislookingfor,youcanofferthesolution-yourproduct/service.Ifthecustomerisinterestedbutundecided,removeanyremainingdoubtsbyexplainingwhyyourproductisideal.Youneedtofocusonbenefitsratherthanthefeatures.
The selling processAtitssimplestlevel,thestagesinthesellingprocessare:
Establish a relationship with yourpotential buyer:Thecustomermustthinkyouunderstandthemandareabletohelpthem.Customersinitiallyperceiveallpossiblesuppliersasthesamesoyou
needtoexplainandshowyourdifference.
Ask questions and listen to the answers:Youneedtohaveanopenmindwithoutmakingassumptions.Listeningiskeytodiscoveringwhatmotivatesthecustomertobuy.
Check your understanding is correct:Toavoidanycommunicationproblemsitsimportanttocheckthatyouvecorrectlyunderstoodeachother.
4.6 Sales
Find out morePlanningtosell:businesslink.gov.uk/startsalesplan
Thesalesappointment:businesslink.gov.uk/startselling
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Match the benefits of your product to theneeds your buyer has told you they have:Peoplebuythingsforwhattheycandoforthem.Youneedtoofferbenefitsthatmatchtheirneedsandgetthemtorealisehowmuchtheywantyourproduct.
Complete the sale:Dontexpectyourcustomertodotheworkofcompletingthe
saleforyou.Onceyourealisetheprospectisreadytobuy,stopselling.Checkandconfirmwhathasbeenagreed,thencompletethesale.Thisisbestdoneinanupbeat,positivemanner.
Notethatyoumaynotneedallthesestages,andtheymaynothappeninthisorder.
4.6
Sales
Worksheet: Summarising your business ideaRecallyourbusinessideafromsection1.Afterperformingyourresearchand lookingatyourmarketingarethereanyadjustments/revisions/editsyoushouldmaketoyourbusinessidea?
Revise and/or edit your business idea:
You have researched and developed it by:
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Worksheet: Customer care
In what ways will you ensure that your customers are satisfied with your product/service?
1. Delivery:
2. Ongoing service:
3. Getting feedback:
4. Other:
Customercareisallaboutensuringthatyourcustomersareassatisfiedaspossiblewitheveryaspectofyourbusiness.Sellingenoughofyourproduct/servicetomakeaprofitwillultimatelydependonyourcustomerscontinuingto
buyfromyou,socustomercareshouldbehighontheprioritylistforanybusiness.Itseasierandcheapertoselltoyourexistingcustomersthanfindnewones.
Therearemanywaysyoucouldmakethelivesofyourcustomerseasier:
makesuretheproducttheywant isalwaysinstock answertheirqueriesimmediately offerefficientafter-salessupport followupafterthesaletofindoutif theyhadaproblemthatyoucanputright makesureanyoneyouemploywho dealswithyourcustomersoffersthe sameleveloffriendlyand knowledgeableserviceasyoudo talktocustomersaboutwhattheylike ordontlikeaboutyourproduct/service listentotheircomplaintsandput
thesituationrightquickly,iftheyhave agenuinereasontobeupset thinkaboutwaysofofferingyourbest customersmoreegdiscounts,fast- trackingtheirorder,orsimplytaking themoutforadrink.
4.7 Providing excellent customer service
Find out more boxIdentifyandsellmoretoyourmostvaluablecustomers:businesslink.gov.uk/startcustomercare
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Whatstepsdoyouneedtoputintoplacetoensureandimproveyourcustomercare?Putanyactionsinyouractionplan.
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What needs to be done By whom Date
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4.8 Glossary
4 PsThecombinationofproduct,price,placeandpromotionthatdetermineshowyouwillmarketandsellyourproducts/service
Brand
Bundleofbenefitsoraddedvaluesattachedtoaproduct,personorplacetomakepeoplethinkofthosevalueseverytimetheyhaveanydealingswiththebrand
e-commerceTheabilitytosellandtakepaymentsonline
Marketing mixThecombinationofallthethingsyouneedtothinkabouttomarketyourproduct/servicesuccessfully
Route to marketHowyouwillaccessyourcustomers,directly(iefromashoporwebsite)orindirectly(iethroughretailers)
SWOT analysisAsummaryofallofyourstrengths,
weaknesses,opportunitiesandthreats
Target marketsGroupsyouchooseasthefocusofyourmarketingeffort
Unique selling proposition/point (USP)Uniquebenefit(onethatyouofferbutyourcompetitorsdonot)
4.9 Action plan
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Byworkingthroughthismoduleyouvetakenanimportantstepindecidingwhetherstartingabusinessisrightforyou.
Takeafewminutesnowtowritedownanyadditionalactionsyouwanttotaketomoveyourbusinessideaforward.
Find out moreFormorehelpwithyournewbusiness:
DotheotherStartingaBusinesstheNo-NonsenseGuidemodules
AttendBusinessLinksStartingaBusinessworkshops08456009006
ContactyourlocalBusinessLink08456009006
Andourwebsite businesslink.gov.ukhasinformationonthemanyaspectsofsettingupanewbusiness
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Module 4: Finding and keepingcustomerscoversresearchingthemarket,gettingyourbusinessofferrightandsuccessfulsellingtocustomers
Module 5: Managing moneyexplainsthekeyskillsneededtoorganiseyourbusinessfinancesandhowtoapplyforfunding
Module 6: Your business planenablesyoutodevelopabusinessplantouseyourselfortohelpraisefinance
Starting a Business The No Nonsense Guideisdividedintosixeasy-to-followmodules.
Workthroughitatyourownpaceordipinandout,dependinguponyourareasofinterest.Step-by-step,thisinvaluableresourcewillguideyoutowardsyourgoalandhelpyousucceedinbusiness.
Module 1: Overviewsummarisesthebasicstepsyoullneedtotakeinordertosetupyourownbusiness
Module 2: Is starting a businessright for you?containsinformationandexercisestohelpyoudecidewhetherrunningyourownbusinesswillsuityou
Module 3: Planning yourbusinesswillhelpyoutoplanthepracticalandlegalaspectsofyourbusiness
PublishedMay2010CrownCopyrightPrintedintheUKonrecycledpaper
URN:BL/006
Aswellasthisguide,BusinessLinkoffersthefollowingsupport:
Workshops to helpyoudecidewhether
startingabusinessisrightforyouandexplainwhatyouneedtoknowtomakeyourbusinessasuccess
Practicalguidesandonlinetools
onourwebsite.Visitbusinesslink.gov.uk
Helpandadviceoverthetelephone.
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