Financial Data
Updated 18 Oct 2019


In the know but customer no-show

You have the expertise but where are the customers?


Ed Hatton, Entrepreneur, 22 June 2013  Share  0 comments  Print


All the answers to your unique business lifestage questions

Challenge

This entrepreneur had 26 years’ experience in the security industry when he started his own security company. For several years he has been unable to secure guarding contracts, and asks for help.

Response

Every start-up entrepreneur believes that a sustainable and profitable enterprise can be built, and this belief is reinforced by expertise in the product or service that the company will deliver.

An expert in the chosen field has big advantages; he or she does not need to climb the product learning curve that affects so many start-up entrepreneurs.

However as our questioner has discovered to his cost, expertise in the chosen field alone does not guarantee success.

A successful business must provide customers with services which they perceive to be more desirable and valuable than the services available from competitors.

This perception is not just about the product or service; it covers the supplying company, people, styles, and brand association — the whole package on offer.

The challenge for start-up entrepreneurs is to create a business that provides the package which will attract customers away from alternatives — and then communicate the package to them.

Differentiation

Our questioner’s business may be a small business offering similar guarding services and terms to those of larger established businesses.

New businesses trying to enter an established market will often imitate the established players to fit in with customer expectations.

If a new little business offers the same as established big businesses, the customer’s viewpoint may be:

“Why should I give you a contract when I have a long-term relationship with a substantial and stable company that I trust?”

If our questioner offers nothing different to established competitors aside from his experience in security matters, then he needs to design a more attractive package.

He could capitalise on his experience to offer security consulting as a part of the service, or his size to promise shorter communication lines.

He could include some free services or any other differentiating benefits. These do not need to be product related — an example is specialisation in a niche area to such a degree that he becomes the acknowledged expert in that area.

Challenging industry norms is often a way forward. If contracting favours established businesses there may be more innovative ways of packaging the service to swing the advantage his way.

Many organisations have become hugely successful by creating their own rules in sectors as diverse as airlines, short- term insurance and pizza marketing.

Telling and selling

Successful entrepreneurs should understand marketing and selling. Along with financial management these are as important as product knowledge.

Once an attractive concept for guarding services has been designed, the next step is to tell his market that this facility exists in a way which will get their attention — probably with a very limited budget.

This is effective marketing. He needs to convert incoming enquiries into sales by showing prospects that his offer is appropriate for them — this is effective selling.

Entrepreneurs should not underestimate the need for effective marketing and selling — these alone can provide the differentiation from other competitors which the entrepreneur seeks.

I can imagine a lot of entrepreneurs reading this and then rolling their eyes while thinking, “But I did all that and it didn’t work.”

This could be true for some of them; there are businesses and products that never attract buyers’ attention, how ever well they are developed, presented and sold.

If that is the case, either get some outside advice and make changes or close the business and try something different.

For the majority of struggling entrepreneurs I suggest they take an honest look at their offering as if they were a customer making comparisons to other suppliers. Ask a friend to help and play devil’s advocate.

Then, even if this exercise bruises your ego, recover quickly, as entrepreneurs do, and think creatively to design the killer package that will build success.

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About the author


Ed Hatton, Entrepreneur

Ed Hatton is the owner of The Marketing Director and has consulted to and mentored SMBs in strategy, marketing and sales for almost 20 years. He co-authored an entrepreneurship textbook and is passionate about helping entrepreneurs to succeed.

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