Have you ever listened to someone intensely tell you about their business and walk away from the conversation still wondering what exactly they do? Ever have a friend say, nooooo, I produce a product, I’m not in the service industry! Have you, yourself rambled on trying to convey your business idea and 15 mins into the conversation you realize you’ve lost your listener?
Well, then perhaps you, like the examples I mentioned, would be wise to sit with pen and paper and define a few things in regards to your business.
First, are you selling a product, providing a service or both? And more importantly what are the benefits and features of your product/service?
Why is this so important you may be asking? Well, imagine you’re speaking with that investor I mentioned in the first blog, telling her about how you need a truck for your mobile tapas idea. However, in the conversation you say nothing about the food or the locations the truck will visit, but go on about how you’re going to teach cooking workshops, or that you’re going to buy this quaint storefront on a busy street corner.
It appears from this scenario that you’re providing more of a service (teaching cooking workshops) and why would the investor give you funds for a truck, if you want a quaint storefront. Your conversations should match your business’ current phase of development and be geared toward the present goal at hand – acquiring funding. By understanding whether you’re selling a product or service and its related features and benefits is paramount.
It means you KNOW what you’re selling!
So what’s the difference between a “product” and a “service”? A product can be defined as things that your customers can “touch” and “take away” with them – something tangible. In the case above, the tapas would be the product. A service is the sale of “time” and “effort” to the customers. Cooking workshops could fall into this category, but it can also be a product, in that customers can take their finished treats home. However, for this discussion I will focus on the “time” spent to “teach” the workshop, which would be a service – an intangible element.
Being clear on what your business sells – products, services or both, is important for YOU to know in order to articulate that to not only your investors, but to your employees as well as yourself. You are the Commander of your business and if you don’t know, don’t expect others to.
Some questions you may want to ask yourself about your product or service are:
- What are the features of your products or services?
- What are the benefits of your products or services?
- What are you really selling to your customers?
- What kind of slogan might you use?
Women’s Initiative curriculum, session 1, pg. 1-12
Both products and services have features and benefits. Features can be defined as describing what the product/service has or does. Benefits are described as what the customer will receive as a result of purchasing your product/service. Benefits describe the why a customer purchases.
Using the example of a desk chair, some the features could be 1)padded seats, 2)adjustable lumbar pillow and 3)durable casters. The benefits could be 1)it’s comfortable, 2)durable and 3)great for your back. Understanding this is one of the key elements in the development of business’ marketing plan.
By writing it out and talking with others – friends, family, even checking out your competition you will be able to adequately define these elements of your business. And by defining these elements others will know what it is you sell!
For more information on this subject and other business topics, check out the www.sba.gov. The Small Business Administration has some great tools and templates to assist you in most aspects of growing your business.
Linked Up
Here you will find helpful links submitted by our Nubian Honey family. Thank you Queens!
12 Cool Web Tools for Small Business
http://www.inc.com/ss/12-cool-web-tools-small-business#4
Small Business Administration (SBA): DBA, Licenses & Permits
http://bit.ly/1K90q
business.gov: Business Name Search
http://www.business.gov/register/business-name/naming.html
Please check with your local county offices for specific requirements for your area.
Featured Queendoms!
Charmaine Masiom
I manage an investment and loans company. Most ideas and the actual building of the company, I did along with a good friend of mine – she has the capital and I have the business sense. Accreditation, drive, personality, plus it helps being a chartered accountant when managing money and balancing the books. I don’t have a lot of spare time (something my women always complain about—but, I’m working on it:-) ). My expertise advice in managing your money, organizing a company and accessing capital to start up your own business, I will pass on to all sistas whenever I can … if you all want, you can drop me a line!
Goddess Leah
I am the creator of a homemade natural product line called Zen Peaces (www.zenpeaces.com). I created this product line to help people switch from commercial and toxic bath and body products to products that were made from all natural ingredients. Zen Peaces line carries bath salts, body scrubs, body butter, bath teas, and body powders. All my products are made by me! You can contact me at leah@zenpeaces.com or 864-907-3616.
And remember you usually get 10 minutes to tell someone all about YOU and YOUR BUSINESS…so what would you say? Because you rarely get a second chance to make a FIRST impression…think about it.
Peace & Prosperity to Us All,
blacgurlzink.wordpress.com 