So you have an entrepreneurial itch to start your own business and you are trying to develop a business plan. You’ve been doing your research, and in almost every business textbook you open you will find something about The Marketing Mix – also referred to as the 4 P’s of marketing: Product, Place, Price, and Promotion. This process has been used by organizations for many years to bring a product or service to the market. It is helpful when developing a specific marketing plan, but maybe you’re looking for more help developing an entire business plan. Just like the 4 P’s of marketing, Small Town Big Idea brings you the 5 P’s of starting your small business. Small Town Big Idea wants to help entrepreneurs manage all aspects of their business and market effectively to their target public. We will discuss each individual P in a 5 part blog series to help you create a business plan that sets you up for success. The first P we will discuss is Problem.
Why Do People Buy?
Before we explain the Problem, you must first understand why consumers buy. In today’s society, people are really buying feelings, not things. They spend money on the products and services in which they place the most value. People place value on products and services that solve a perceived problem in their lives. We all know an iPhone is a thing, but you’re not buying an iPhone because you need a phone. If that was the case we would all still be walking around with those indestructible Nokia cell phones, or better yet using a landline. Buying an iPhone brings you into the Apple family. It solves the problem of lack of connectivity and belonging by making you feel like a part of a culture.
When people buy, they are trying to fix a problem. Apple has done a pretty good job at identifying problems because they sold over 74 million iPhone 6’s during the first quarter of its release and you certainly don’t see people walking around with those indestructible Nokia cell phones, or using landlines. So what is that problem? Maybe you buy an iPhone because it makes you feel safe that you can call or text someone at any time. Maybe it’s convenient to check email because you can carry it with you at all times instead of having to go find a desktop with internet. I can tell you I bought the most recent iPhone because it is a giant pain to monitor several social media accounts from a tiny little screen, and the iPhone 6 allowed me to have a larger one.
So What Is The Problem?
Identifying the problem you are going to solve is the first step towards the success of your business. After you have identified the problem you have to ask yourself, “Is there demand to fix this problem? Do I have any competition? If so, who?”. Small Town Big Idea invites you to find out what problem you are trying to solve and answer these questions. Join us for our first workshop September 1st. We want to discuss the problem and tell you more about the next P: Product.