This week I want to talk about connections and impact. As many of you are in the process of setting up your business, or have new businesses, you will know that The Millin Charity promotes plans. Business Plans in particular are essential tools to help you understand all aspects of your business.
Business Plans help to break down all the functions and elements that make up your business into ‘bite sized’ chunks. However, they are all connected.
How you set your pricing policy depends on your understanding of your customers and your market place. It also depends on your marketing strategy and how you position your business in that market place. You also need to know all your costs, both the direct costs (materials, time) and the indirect ones (rent, utility bills, insurance), and you need to make money for yourself. And you need to understand how these change across the year, and when you might want to offer incentives and deals to persuade people to buy from you or to clear old stock. So your pricing policy may also change with the seasons.
So if your customers want a cheap solution to their problem, but you want to charge a higher amount, then your marketing strategy needs to emphasise other benefits of buying from you. If this is because your product or service is of a high quality, your marketing and branding need to say this, or that you can be faster, or there are other benefits like supporting the community, whatever it is that will persuade customers to spend that little bit more with you.
When starting a new business, having the confidence to say “This is my price because it’s worth it”, comes from writing a good business plan, and as you develop your business, the plan needs to be revised and refined. In this way you can better understand the impact of different situations and which part of your business you need to adapt to take best advantage of a changing world.
Personal connections are also crucial when developing and running your business. This is why building good networks is important. And these networks can be virtual through social media or real. Actively participating in networks can sometimes feel like a waste of your time, but remember, every time you make a personal connection with someone, they may have the answer to your question, and sometimes answers to questions you hadn’t thought to ask. And networks also include the most important people to your business – potential customers.
So, keep networking, talking, connecting – it’s good for you and good for your business!
If you would like support with developing your business ideas further, please get in touch and we can arrange a one-to-one business advice appointment.Back next time with some more tips for great businesses! Janet x