Have a business idea? What's next?
That's the question Becky Prater, a senior lecturer at the Entrepreneurship Center at Metropolitan State University of Denver, answers for students and aspiring entrepreneurs. In addition to mentoring business students, Prater also hosts “Launch Denver,” a free 11-week workshop designed to help participants get their businesses off the ground.
We spoke with Prater to get a taste of the tips she'll offer during Denver Startup Week, which runs from September 18-22.
1. Know your business objectives
Simon Senick's TED Talk “Start with Why: How Great Leaders Inspire Action” discusses the “why” of business. Who are you serving and what are their pain points? Who are your customers? what You will how You do it, but they end up why You can do it. For example, let's say someone wants to start a coffee shop. So, do you sell coffee? That's easy. But why do you sell coffee? Is it because your parents are from Colombia and your family are coffee farmers there? Do you want to create a community for a certain group of people? Consumers want to join and support people they believe in. You have to tell them what it's about and they will buy your product or service.
Related: Business is booming
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Success stories MSU Denver alumni Keisha Mathes of Herbal Honey and Chennale Diong of GoodLove Foods have advanced to the semifinals of the Denver Startup Week pitch competition, and you can cheer them on on final night. Thursday, September 21st at El Patio from 4 to 6 p.m. |
2. Understand the numbers
During Denver Startup Week, I'll be hosting a “Money is Your Business Partner” workshop to explore people's relationships with money and discuss healthy money mindsets.
One of the questions we ask people in business is if they know how much it costs to provide a product or service and how much they get for it. But many don't know or don't take their time into account. You need to know where your money goes, where it comes from, and how much you have left at the end – your cash flow.
Next, you need to know how much of a product or service you need to sell to pay your bills and stop wasting your time. You need a goal, for example, “I need to make $10,000 per month to pay all the bills I need to pay, plus a salary to do it.” This is about the sustainability of your business.
3. Establish a vision
Decide what you want and write it out in a business plan. People often ask me, “Why do I have to do that? It will take so long,” but I don't believe that. I think of a business plan as a recipe or framework where you can put all of your creativity and ideas into creating a roadmap with steps and long-term and short-term goals. Write it down and you'll make it happen. A business plan defines your goals and provides the GPS coordinates to get where you want to go.
4. Do your market research
The MSU Denver community and most public libraries have access to an industry database called IBISWorld, which is an industry database that helps businesses understand what is most important to their success. Looking at industry ratios (or industry averages or cost structure benchmarks) can tell you how much you need to spend on different aspects of your business, such as marketing, rent, wages, and purchases. This allows entrepreneurs to create financial projections based on actual numbers, not guesswork.
Additionally, you need to know who is doing the same thing as you. This is sometimes called competitive analysis. Instead of viewing these people or companies as your enemies, look at your competitors as people who can do something similar by observing what they are doing. If they are already successful, what makes them successful? Sign up for their newsletters. Watch their social media and join their communities to understand how they do it and why it works.
Keep in mind that your business has its own unique characteristics and is different from others, so instead of copying, it's about observing others and using that information as a guide.
This can also be a relief for entrepreneurs who feel like they're entering a saturated market. It may feel completely saturated, but with the right environment and signature, you only need to change one thing to be successful.
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5. Integrate branding and expertise into your digital marketing
We go back to the foundation of your business: your “why.” Why are you doing this? What's your story? Tell your story and showcase your expertise in whatever way you can — through blog posts, website content, email newsletters, etc. — all of these will capture your customer's attention.
The next step is to master a set of keywords that you can use for all your content. Understand what people are searching for on Google to find your company. What do they want to know about your industry and what are they searching for? There are many websites online that can help you find that out.
