Business lesson 102 – How to start your own business
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Hi kids!
A new week, a new lesson!
I am so excited to share this week's lesson with you but before we can get into it let’s first review last week’s lesson.
As discussed in our previous lesson to plan for the success of your business you must have a business plan. Over the next few lessons I am going to help you to write that perfect business plan. To enable you to write it we are going to take a closer look at the three key components of or “C’s” of any business;
C – Concept
C – Clients or customer
C – Cash flow
We started off last week by taking a closer look at the term “Concept”.
Well done to those who submitted their homework! It is clear from your posts that you understand the term “concept”, that IDEA behind your business. If you don’t have a concept or idea for your business you will not have a business.
Well done! You guys did very well and it is clear that you not only know the term concept but also the concept of Steemit.
To end the lesson;
Our Steemkids friend @dwarrilow2002 sent me a link which I want to share with you today. This video is a great reflection of what a concept is. BUT before you watch it I have a question for you.
Will you trade a paperclip?
Now that you have a concept and you know the kind of business you are going to operate you must decide if your business is going to make use of clients or customers.
What is a client? A client is the person to which you deliver a service.
Example - A lawyer delivers a service to his/her clients
What is a customer? A customer is the person to which you offer a product for.
Example – A supermarket sells products to its customers
The best investment you can have in your business is your clients or customers. Therefor it is of vital importance that you know who your clients or customers are.
The next step is to “write” these clients or customers into your business plan. I can hear you, “How on earth must I do this?” It is so easy!
We are going to do a customer analysis. To put it in plain English, we are going to a closer look and examine your clients or customers and we are going to keep it very simple.
5 Easy questions for you to answer which will help you to analysis your clients or customers:
- Target market - Who is my clients or customers?
- Demographics - Where will I find these clients or customers?
- Need - Will my clients or customers have a need for my service or products?
- Budget - Will my service or product fit the budget of the client or customers in their need?
- Loyalty – What will my clients or customers be looking for to stay loyal to my business?
Homework:
I found a great example of a Customer Analysis for a candle making company on Growthink.com.
All I want you to do this week is to read the example and then to answer the following 6 questions.
- Is this a client or customer operating business?
- Who is the target market?
- What is the demographics?
- What is the need?
- What is the budget?
You can simply answer the questions as a reply on this post or you can write a post if you want to.
Here we go!
The Candle Makers is a business that specializes in the online sale of candles. The customer segments it is choosing to serve are millennials who are interested in unique and artisanal products. These customers are located in the large metropolitan cities on the West Coast, and their average annual income is $75,000. The needs of these customers are primarily that they are looking for high-quality candles that are made with all-natural ingredients. The benefits of its product that are most important to these customers are that the candles are vegan, eco-friendly, and made with essential oils. Drivers of customer purchase decisions include quality, price, and unique offerings. The company’s target market size is 750,000 people, and it will put significant effort into reaching these customers through online advertising, social media posts, and word-of-mouth.
The needs of this customer segment are that they are looking for high-quality candles that are made with all-natural ingredients. The benefits of their product that are most important to them are that the candles are vegan, eco-friendly, and made with essential oils. Drivers of customer purchase decisions include quality, price, and unique offerings. The company’s target market size is 750,000 people which represent a significant portion of the candle industry. They will put effort into reaching these customers through online advertising, social media posts, and word-of-mouth.
See you all next Wednesday!
@ibtisamwaqas @binwaqas @kishwarsumbal @bossj23 @madilyn02 @leyxi209 @geoscary21 @chukwu10 @dorismos @favour11 @princeifeko @yeri52 @katherine012 @fortwis09 @chimeroselam @ghani12 @wizzyboy3 @deben @tarazona14 @jlvillamizar @joymm @david-o @jueco @elyayo
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Great tutorial as always. Thanks for having the kids at the close to your heart. The kids will really benefit. Keep being progressive in your tutorials and as simple as the ages of the kids. We appreciate all you do for the kids
The pleasure is mine!
Client or customer? Very important. There should be a difference. I like this topic. Thanks for the wonderful way you have explained it to understanding of all especially the kids. I appreciate
I love serving the kids of the community. They are all my cients :-)
Business is difficult but I do hope that I explain it in a simple manner. I will also strive in keeping the homework easy and not a burden. Pls your advise is needed if I am in the wrong
Hello @patjewell
Thanks for sharing a great business idea, with these steps you've pointed out one can be successful when starting up a business.
It will make me the happiest person on earth if only one of them make a success of a business. :-)
Thank you for reading the post.
Great lessons for both kids and Adults 😄, i have to confess, i think i have benefited from this as well...thank you very much.
Ofcourse to excell in a business, you need to know who your customers or clients are, this will help you keep proper record to follow up.
Good news that you have also paid attention!
I will send you the exam paper. :-)
Go ahead, 😊 at this moment, i'm your student😊
Thank you so much teacher, for this lesson. I'm getting my homework ready and soon I'll be submitting...
You are such a keen participant!! Always giving your best.
Don't ever stop!
Nice one and interesting to know about business plan we have to before setting up a business
I’m glad you’ve enjoyed it.
Building a good business can be achieved step by step
I am learning from this too and will definitely apply this knowledge in the real world.
That will be great! After all, it is the basis on which I've built my businesses :-)
Hello @patjewell, Your post has been selected as one of the quality posts for the day by steemkids community. Congratulations! Please keep making quality and original contents with us here. We love you so much and will like to read more of your posts.
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Very nice tutorial, your customer are very important people so to me in my business I don't joke with them, I pet them so well
It is wonderful that you look afyer your customers 👏🏻👏🏻