Challenges of setting up a business

I was inspired by "Your Value Proposition " Posted by Bill Ryan on February 7, 2010

I extracted this content from a slide presentation we gave to a group of start-ups sponsored by a local Chamber.

1. Having a compelling value proposition and being able to sell it. Much easier said then done. This leads to better identification of your target market and puts you in front of competitors that may be larger and better funded.

2. If your in a "for profit business", Be profitable. Anyone can find customers to give their product and services to. By understanding the real costs associated with delivering your product or service (breakeven), you can plan for profitability.

3. Manage your cash flow. This includes a forward projection of funds coming in and expenses going out. Doing this properly will limit your use of a Line of Credit. Remember that you're much more competitive when you're not paying interest on working capital.

4. Create standard operating procedures (SOPs). This allows you to be consistent in your approach and communicate clearly with others. When starting a business, it's a significant differentiator to be able to show others how things are going to get done. Lends credibility and sets an expectation of repeatability with a customer.

5. Track your performance. There is no better sales tool then being able to show a potential customer real data on performance. i.e. delivery performance is 100% over the past three months etc. If you want to be best in class then close the loop and have feedback from your customers that validate your performance claims.

NEVER let low price be your differentiator. Kiss of death for a startup.
Source: http://ShadowExecutive.com