Thursday, January 05, 2006

Friends, family and even foes: your initial customers

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Every time I've been worried about entering a new business or market, I found that the best way to address my value was to talk with friends and family members. The big problem with calling up a good friend or a close family member is that they are not always the most honest -- they don't want to hurt your feelings. After learning the hard way that friends and family don't always tell the truth, I found that the missing puzzle piece was talking to my foes -- competition and people who I didn't necessarily get along with.

Why ask anyone about a future business? To see if you're in over your head, or if they think it is a good idea. Coming up with the questions is something that has taken me 10 years to do properly, I might as well share those secrets here. I tend to ask friends first, family second, and then approach my foes last.

Some basic questions to ask:

1. Would you mind answering some questions for me regarding my idea to start my own business?
2. Will you be as honest as you can be and ignore what you think I want to hear?
3. Do you think I am responsible enough to run my own business?
4. Do you think my appearance would be proper in the business I'm thinking of starting?
5. If you didn't know me, is there anything about my demeanor or attitude that would make you not want to think about doing business with me?

Some market questions to ask:

1. Do you have a need for the business I'm thinking about? Do you know anyone who has a need for the business I'm thinking about?
2. Are you currently using the product or service I'm thinking of providing? Are you happy with your current provider?
3. Have you had any really good or really bad experiences in dealing with others in the industry I'm considering?

After your friends and family have given you their (hopefully) most honest replies, head out of your market region and find yourself "foes." If you're looking at retail or service, I generally recommend finding someone in the same business at least 1-2 hours away. Be honest, let them know you're considering the business they're in, and ask if they have any opinions they can give you. I find that these "foes" can be more honest than my own friends and family! Usually you'll hear the WORST case scenarios -- these competitors generally don't even want someone a few hours away getting in the business, but hearing the worst situations can be a huge benefit to you in the long run.

You don't see yourself as other people see you. Your level of honesty, trustworthiness and responsibility are generally ingrained in your persona, but all of these can be changed if you have a tendency to fall towards the bad side of any of the three. I would not recommend starting your own venture until you've addressed any issues people have with you. If you are not responsible, starting your own business will not fix that. If you are dishonest, starting your own business will make it worse. If you are quick to break a trust, you'll find yourself broke and jobless quickly. I'll try to address how to fix these issues over the next few weeks, from my own experiences in my own shortcomings and those of others I've helped over the years.

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