DCG Ecommerce Solutions

Entrepreneur,  Sept, 2005  by Nichole L. Torres - Creating a product or service to meet your own needs is one of the oldest business inspirations in the book. The thought, "Hey, I would like a service like this" inspires moms to invent nifty gadgets to make child rearing easier, and college students to deliver food to dorms. But how can you make sure a product or service you want will translate to the masses? How can you get the public to open their wallets for something you initially conceived just for you?

"You can't assume that what excites you about the solution is going to excite them," says Kristin Zhivago, author of Rivers of Revenue and founder of Zhivago Marketing Partners Inc., a revenue growth consulting firm in Jamestown, Rhode Island. You have to communicate to potential customers what is important about your product or service, says Zhivago. She notes that many entrepreneurs immediately go into salesperson mode--forgetting the crucial step of going into buyer mode.

Detailed research certainly helped Debra Myers learn about her target market. Though she originally created Enfusia, a specialty bath and body products manufacturing company, after her own personal struggle with eczema symptoms, she believed there was a larger market out there for nonirritating skin-care products. She began asking her family and friends to try out the shea and cocoa butter lotions she was creating in her blender. "My friends are the biggest circle of high-maintenance people on the planet," says Myers, 38. "I knew if they would like it, most of the world would like it."

Myers, who has a background in cosmetology, commissioned a friend to help her concoct the lotions, and she officially started the company in 2002 in The Woodlands, Texas. She also focused on contemporary labels and packaging--though her products are all-natural, she didn't want to emulate the plain packaging used by similar products. The strategy helps her market to everyone, not just people with skin irritations. Today, with the Enfusia line available online (www.enfusia. com), in some Whole Foods stores, and in gift stores and hospitals nationwide, 2005 sales should hit $250,000.

Though stepping out of your own mind-set to get into the minds of your customers is a challenge, it will be well worth it. While you're convinced you have the coolest new widget around, Zhivago suggests checking out your competition and creating a grid-type list detailing the price, benefit, brand recognition and other general attributes of both your product or service and theirs. It's important, she says, "so you're not kidding yourself about where you fit into that grid." Forcing yourself to be honest will allow you to target your customers' needs--not your own--and that will dictate your market-to-the-masses strategy.

Ready for Takeoff?

ASK YOURSELF THESE QUESTIONS TO ENSURE ALL SYSTEMS ARE GO FOR YOUR BUSINESS LAUNCH.

Starting a business is a huge undertaking. How can you possibly know if you're ready for that step?

Small-business experts Jeff and Rich Sloan of StartupNation.com, a business-advice website, suggest answering these questions before you get started.

* WHAT IS YOUR GOAL IN CREATING THE BUSINESS? Says Rich, "It's very important to understand what your endgame is in order for you to start out the right way."

* HOW DOES THE BUSINESS IDEA FIT INTO YOUR BROAD LIFE OBJECTIVES? "We advocate doing your life planning before your business planning," says Rich. You should have a realistic idea of what you want and how your business will contribute to your lifestyle.

* WHAT IS YOUR TOLERANCE FOR RISK? While any startup has risks, some are riskier than others. A franchise, for instance, already has a set plan to follow, whereas mortgaging your house to open a retail store may carry more risk.

* HOW MUCH MONEY DO YOU HAVE? How much are you willing to put into the business to see it through to a self-sustaining level?

* WHAT KINDS OF FINANCIAL RESOURCES ARE AVAILABLE TO YOU? Think about the types of funding sources that would fit well with your business model--such as family members, angels, VCs, SBA loans and so on--and how you can tap into them. Also, ask yourself what kinds of resources you're willing to obligate yourself to.

* ARE YOU READY TO HANDLE THE CHALLENGES? "You're going to have to be tenacious and determined to overcome them," says Jeff. "If you feel weak at all, I would suggest that now is not the time."--N.L.T.

Money Matters

WHO'S WATCHING YOUR MONEY? AN EXPERT GUIDES YOU IN FINDING A GOOD FINANCIAL PLANNER,

How do you decide who handles your money? According to Jack Waymire, author of Who's Watching Your Money? The 17 Paladin Principles for Selecting a Financial Advisor (www.paladinregistry.com), 75 percent to 80 percent of financial advisors are really sales reps masquerading as advisors. We recently talked to the author to learn how entrepreneurs can choose wisely.

ENTREPRENEUR: WHAT ARE THE MOST COMMON MISTAKES ENTREPRENEURS MAKE WHEN LOOKING FOR A FINANCIAL ADVISOR?

WAYMIRE: If you think about finding an advisor, two things generally happen: either you find the advisor, or the advisor finds you. And unfortunately, a lot of entrepreneurs are on [many advisors'] hit lists. [Bad advisors] tend to be more sales-oriented, and they're cold calling, marketing. One of the biggest mistakes [entrepreneurs] make is that they listen to these sales pitches ... and they hire people that sound good as opposed to looking at the credentials and business practices of the advisor.

WHAT SHOULD YOU LOOK FOR IN A GOOD FINANCIAL ADVISOR?

WAYMIRE: You want somebody who's college-educated with at least five years of experience--probably 10 years or more. You want somebody with one or more certifications: a Certified Financial Planner (CFP), [or another good certification] is a Certified Investment Management Analyst (CIMA). You want somebody with a lot of knowledge and a lot of integrity; check their compliance record at the National Association of Securities Dealers website  to make sure they're clean. That's the kind of person you want handling your assets.

WHAT ARE THE RED FLAGS TO LOOK FOR IN A BAD FINANCIAL ADVISOR?
Stepping out of your vantage point can be a challenge, notes Zhivago, but she suggests simply interviewing your potential customers. A phone survey can help you get clued in to your target market's needs, what they're looking for in a product or service, and what would move them to try something new.

WAYMIRE: [Many are] only Series 6 licensed--which means they can only sell products for commissions, they can't offer advice for fees. You really want a fee-based advisor because one of the biggest criteria for avoiding that bad guy is [asking], How does he get paid? If they only want to sell you products for commissions, that's a huge red flag. Think about the way you compensate a lawyer, CPA or any other professional. I pay [them] an hourly rate; I don't pay a commission.--N.L.T.