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August 31, 2009
Follow the Money
Networking for a small business owner (or an aspiring entrepreneur) is always helpful, but networking during times of economic turmoil is essential.
As a single-owner proprietorship, you can set up a simple advisory board locally that includes a wide spectrum of professional expertise that you can draw on for advice. Such board members often are attorneys, certified public accountants, civic club leaders, owners or managers of businesses similar to yours or whom you do business with, and retired executives.
They could be three to five individuals who are knowledgeable about the environment in which you do business and are able to connect you with the information you need to make good decisions.
The purpose of such an advisory board is to offer you objectivity. It should be people who are truthful with you and who will keep your disclosures confidential.
Most advisory boards discuss specific business problems you have and brainstorm about possible solutions -- and help you take the next step in your development after you have been operating as a small business for awhile.
But, why not employ the advisory board concept to explore your market niche before you make a commitment to a business model?
You could charge the members of your temporary advisory board with this mission: help you define and identify a market niche of customers for your product or service who have discretionary money to spend or who are not affected by economic downturns.
In other words, they could help you "follow the money" by targeting potential customers who need your product or service and have the ability (and willingness) to pay you for what you offer.
The information you gain will help you develop your business plan for a profitable business.
And you can do all this online through social networking sites. For example, you could set up your own private LinkedIn group, Facebook fan page, Twitter chat etc. just for your temporary advisory board.
Here are five business guidelines and concrete examples your online group of advisors could help you evaluate in terms of potential profitability.
- Orientation and Mobility
Guideline: Contact potential customers before they contact you about what the problems are. Can you help them in some way? You can gain a longtime relationship with a customer by approaching them proactively with the view of being there to help them through their own hard times.
Example: Have you been collecting tips about how to enjoy leisure travel when you have a visual impairment? You could write an eBook about them and offer it for sale through a web site targeting baby boomers who are financially ready to retire and travel but suddenly find themselves dealing with orientation and mobility issues. Would they be willing to pay for your eBook?
- Educational Services
Guideline: Avoid market niches which already receive your services for free.
Example: Be aware that college students with disabilities often can get free career counseling through Student Disability Services on campus. So, if you’re a career coach, why would you target that market as an entrepreneur? Or, is there a specific need within the career management sector that is not being met by on-campus services – a void you could fill as an independent contractor?
- Public Financing
Guideline: Follow local, state and federal priorities in public financing.
Example: Study government spending in your sector. If you’re serving a sector of the economy which is receiving stimulus money (such as education, infrastructure, energy etc.), how would you be able to tap into that emerging market buoyed by public money or receive grant money to service that market?
- Assistive Technology
Guideline: Study trends in demographics which will have an impact on your product or service.
Example: Think of people who are in their peak earning years and beyond who are acquiring visual impairments. What do they need and want? Do they need or want to work beyond their normal retirement age but have little knowledge of the assistive technology that is now available. Would they pay for accommodation help from a private individual who has experience in mainstream employment and assistive technology?
- Corporate Alliances
Guideline: Study successful online entrepreneurs and what strategies they’ve used to reach their targeted market niche.
Example: Explore affiliate relationships, partnerships or alliances with your vendors or with products or services closely aligned with your own. Which alliance reaches the most profitable spectrum of potential customers?
By the way, people with disabilities who want to start a business can find assistance and support from a number of different local agencies.
Check this fact sheet for some of the many business resources that are available across the U.S. that can help you become self-employed or start a small business.
What other ideas do you have for using online networking to help you develop a profitable small business?
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Posted by Liz Seger at August 31, 2009 01:08 PM