Ep. 024 – Top 10 Things to Consider Before Starting Your Business Part 8: Identifying Your Prospective Customers

Today’s episode is a continuation of the series, “Top 10 Things to Consider Before Starting Your Business,” which was initiated by one of the show’s listeners, Kathy. She is making the shift from the corporate world to entrepreneurship, and is in the process of starting her first business; she asks, “What do you suggest that I consider and avoid before taking the leap of faith?” Tom discusses the eighth thing to remember before starting your business, knowing your customers.

Key Takeaways
A big part of telling your story includes knowing who your audience is, and today’s episode delves deeper getting to know your customers. Tom offers five tips to accomplish this in your own business.

Tip 1: Ask them

The first thing you must do is get out there and seek immediate and direct feedback from your audience or prospective audience. There’s no better way to figure out what someone is thinking than to go out and ask them. In order to do this, use whatever means you have to connect and test out your assumptions. Different ways include social media, calling, sending out surveys, writing an email, and challenging them to give feedback. Most importantly, find out where your customer base lives, what they need and care about, what they do, why they do business with others, and what’s important to them. The best question you can ask to prospective customers is not if but will they do business with you.

Tip 2: Understand what they think of you

You must understand what they think of your company, products, and services. Don’t get blinded by your own creation because most people aren’t as intrigued by your company and products as you are. You can’t assume that you have all the answers or that you know what they are thinking; get outside of your business or your mind and into the market to ask people what they think of your stuff even if you’re just contemplating your business concept like Kathy. Make sure to involve them in the process and ask them to help you. You can host webinars, workshops, or events in order to receive honest and candid feedback. If you would rather go with the more formal route, you can create advisory groups, which will require a higher level of commitment, regular communication, and agendas but can be a valuable source of regular feedback.

Tip 3: Never rely on your imagination

Nothing is worse than getting out into the market and discovering that your assumptions about your business and customers are wrong. You can never rely on your imagination, thoughts, concepts, and initial hypotheses. It’s not to say that you don’t have good ideas or instincts, but you have to trust but verify them by testing your market.

Tip 4: Give them a reason to participate

Your audience needs a reason to participate. Ask them what they think of your products, services, and your company in general. It might be beneficial for you to create a hypothetical debate within your company and ask if they can help you settle it. What if they say that they aren’t interested or that they are busy? Go out of your way to involve them in the decision making process by conveying what is in it for them. It doesn’t necessarily have to be money; it can be praise or even some of your product—“I would love for you to be a test customer for a new line that we are releasing!” Status clubs and classes of customers are excellent ways to get your audience interested in participating. The most important factor in having your audience take part in giving you feedback is that it gives you a unique and objective perspective about your company and products.

Tip 5: Take reasonable action on their feedback

Finally, leave them feeling like their time was well spent and keep them informed about the ways in which they have helped you and your business. Giving them praise makes them feel like they have ownership in the direction of your company; they will feel valued. Communicate to them why you couldn’t integrate their perspective or the ways that you could. Feedback from customers or prospective customers is one of the most valuable assets that you can attain, so connecting with your customers regularly and making them feel needed is important to the success of your business.

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