What is the main difference between a successful company and a company that goes broke? Apparently, the second one does not have clients.
You may say that a successful company has better production and more professional management. But all this is nothing when you don’t have clients. There is a good formula for starting a new business. Find customers before starting a business. This may sound weird, yet it is a great step for a successful start.
Let’s see the difference between two approaches: reaching clients before starting a business (Owner A), and setting up a company first (Owner B).
Both Owners A and B have found great ideas for a new business. They have researched the market and created business plans. They have equal chances for success. Now Owner A reaches potential clients to find out if they are interested in his business and informs them that he is about to open it. He collects leads and ideas for his business during his research.
Owner B registers a new company, rents an office and hires staff. Owner A collects a pretty good base of hot leads and also sets up a company.
Owner B creates his products based on his ideas and market research. Owner A creates his products based on his ideas and the feedback that he received when collected leads.
Owner B polishes his products to announce the grand opening. Owner A creates sample products and calls his leads to come and check them out. He polishes products based on the feedback of his potential customers.
Owner B announces the grand opening. Nobody has ever heard about his company. It’s time to start searching for clients. Owner B still has to cover all expenses from his savings or borrow money from bank. Owner A calls all his leads to invite them to his grand opening. The company closes sales from the first day.
This sketchy example shows that a business has better chances to survive when customers go on the first place. There is no business without customers. So why do we still know both types of the business owners?