Tips to starting your own business #2

Previously I listed three tips that really helped (or hurt) when starting my business. I received so much feedback that I’ve created this post with 3 more. 

Give your product away
Let’s get real - it is virtually impossible to measure the effectiveness of advertising.  People want to try a product or service for free before they pay for it.  So give it to them!

Know the biggest mental barrier people have when trying something new?  Opening their wallet.  So make it easy for them and give it for free.

If your business is new, almost nobody will know about you.  Find a large nonprofit who has an annual fundraiser and offer a prize in the silent or live auction.  This is GREAT and AUTHENTIC PR, as you’ll be promoted in front of hudreds of people who have money to spend!  And it will paint you as a civically-minded business to boot.

Charge More Than You Should
The biggest misconception I used to have about pricing is that cheaper is better.  I can beat Panera’s price of a boxed lunch – surely people will choose me over them.  Wrong!

My mistake was not realizing that people associate price with quality.  By trying to be so much cheaper than my competitors, I was actually suggesting that my product was inferior.  It was only when I increased my price (and the better-looking packaging didn’t hurt) that our boxed lunches started flying out the door.

Everything Means Nothing 
Have you ever asked someone, “what was the best part of your trip?”, and they reply “everything!”  Listen closely – replying “everything” means that nothing really stood out, or they’re not interested in thinking hard enough to answer your question. 

Be known for ONE SPECIFIC thing.  You want people to think of YOUR BUSINESS when they think lawn care, tax preparation, bartending, furniture refinishing, knife sharpening.  It doesn’t mean you are a one-dimensional company, but your signature product will get people in the door to see everything else you offer.

As our café was searching for its identity, we noticed people loved our chicken salad.  As though my proudly Italian mom fought to highlight our lasagna and pasta, I knew that the customers were talking about our chicken salad.  So we embraced it and it took off.

With all the advertising noise we hear, business cards we collect, and people we meet, it’s easy to be forgettable.  Use these tips to keep you top of mind for your clients and prospective customers.  It takes time, but remember if it were easy, everyone would do it.