First steps to launching your business
The very first time we (Ange and Ruby) sat down to start working on Biz Launch Lab (not called that back then!) and LaunchKit (also not called that back then – and we’re never telling!) we were in a public library in Sydney.
We were sitting in the absolute grossest part (because all the good spots were taken) and it was hard to concentrate with strangers walking in and out and people giving us the eye because we were talking (it wasn’t a silent section!). There was also some guy snoring nearby...
The second time we were at Ange’s dining table in Melbourne.
The product we’ve ended up creating – LaunchKit – is pretty different to what we first talked about. Things changed. We changed.
We went through many iterations and changes of mind and massive ‘aha’ moments. Then when we knew we were onto something, we spent a fun afternoon (okay it wasn’t all fun – but the part with the wine later was) with a whiteboard getting clear on our purpose, target market, etc.
And all of that before we’d decided on our name and certainly before we’d thought about creating a website.
All of which is to say that when you’re starting up a biz, things change fast in those early stages. And things aren’t pretty! There ain’t nothing glamorous about starting a business (as I’m sure you already know well).
Before you get to the bits like deciding on a name, setting up a website and making your millions, there’s some really important foundational work you need to do.
Build your house from the (under)ground up
Building and marketing a new biz is a bit like building a house – the foundations are the most important bit. They’re invisible to outsiders, but if they fail, the whole thing might crumble.
Don’t worry, you don’t need to get these foundations ‘perfect’ – nothing’s set in stone and they will probably evolve as your business grows and changes.
But when you’re starting out, and getting ready to market yourself, there are some steps that you shouldn’t skip.
(Note these steps relate to marketing your biz – not legal or financial steps, which are also very important but are outside our area of expertise. We passed maths in school but only just…)
1. Get clear on your purpose
Having something that drives you beyond just the need to pay the mortgage or rent is super important. This is your purpose. It might be a purpose that relates to your clients (e.g. to make people’s lives better in some way) or that relates to you (e.g. to create a life with more flexibility and freedom, that lets you take Friday afternoons off and all of January).
For example, the purpose that keeps us at Biz Launch Lab going is this:
To help people launch great businesses, feel energised in our work and create freedom and financial security.
When times get tough – and they probably will – what will keep you going? What will get you out of bed and in front of your computer or to that meeting with a potential client when everything feels hard?
2. Check your idea is viable
This might seem obvious but you’d be surprised how many people don’t do this. Having a brilliant idea and a good gut feeling unfortunately isn’t quite enough. You need to know if people actually want or need what you’re going to be selling. Is there enough of a market for what you want to offer?
You might need to do some research. Depending on your biz, this might be formal research or as simple as having a chat to some people (your target clients – not randoms).
Is there a need for what you’ll be offering? Will there continue to be a need in the future? Can your target clients afford it?
Think about the figures too. If you’ve got a turnover goal, is there a big enough market for that? For example, if you’re selling a widget for $10, but you’re aiming for a $500,000 annual turnover, you’d have to sell a lot of $10 widgets! Is that realistic? Are your widgets sustainable or a passing phase?
3. Know the problems you solve
Another crucial step! When you have a clear understanding of the problems you solve, you can figure out who has those problems and get clear on the results and benefits you deliver. This is vital in knowing how to market your biz.
Do you help people get fitter? Does your program mean people sleep better? Do you reduce their overheads for payroll management? Do you help people uncover their ideal career?
If your answer right now is “I solve loads of different problems”, you need to keep refining.
4. Know who has those problems – your target market
This is a really great way to get clear on your target market and niche (the bits that nearly everyone struggles with!).
So think about the big problem you solve and who’s really affected by it. What types of people (or businesses) experience that problem?
Those people (or at least certain groups of them) will become your target market. Then you can whittle that down and get to know them a little better.
A lot of people get stuck trying to paint a super-detailed picture of their ideal clients at this point. Because you’ve probably been told to do that, right? But at this early stage of your biz, you don’t need to go as deep as that. You don’t need to know what’s in their fridge or what colour their car is (unless you paint cars). You’ll get to know your clients more closely as you work with them.
But at the same time, don’t make the mistake of thinking ‘everyone’ is your target market. Try selling to everyone, and you’ll probably end up selling to no one.
Not sure who your ideal clients are? Need to get clearer so you can connect with your target audience and start working with paying clients? Our free 15-page workbook ‘5 Steps to Getting Actual Clients’ steps you through a simple process for getting to know your target clients. Plus 4 other key steps to getting those clients in the door. Get it here.
5. Package up your services
So now you know who you’re selling to – but are you crystal clear on what you’re selling them?
Feels a bit like it’s in the wrong order, doesn’t it? Well, to get clear on your target clients you need to know what problems you solve. But to figure out what you offer them, you need to know who they are.
A lot of this foundational work is like that. You need one thing to do the other, so where do you start? (It’s like when you were 21 and trying to get a job – what comes first, the experience or the references?!) The answer is to just push on, do the best you can for now, get out there, work with real people, and course-correct as you go.
When you’re starting a service-based business, one of the trickier parts is working out how to sell what you know. Because it’s an intangible thing, and you probably have a huge amount of knowledge and expertise, it’s hard to know how to put that together, how to present it, and what to include or leave out.
One of the best ways to do that is to create packages that cover people’s needs. That’s where you present a service, or several services, as something that feels a bit more tangible, in that it has a start and an end – and in that time it achieves something specific.
But whether you decide to sell packages or just individual services, make sure you’re clear on exactly what you’re delivering and what the benefits are.
6. Price your services
The money part! Pricing is a vital cog in the marketing wheel. You want to price your service in a way that makes it accessible for your target market, but also shows value (i.e. doesn’t make you look cheap) – and lets you pay your bills!
It can be tricky to know how to price your service. With a product, you’ll have some hard costs, but when it comes to services, you’re often basing your pricing on time, and it can be hard to know where to start.
Remember this: it’s not so much about how much your potential clients have in their bank account, but how much they’re willing to spend to solve their problem. And if you can make it clear that you can solve their problem, chances are, they’ll want to spend their money on you.
However you calculate your pricing, make sure you have a good idea of what similar services or knowledge-based products cost in the broader market. Sure, it’d be nice to charge $2,000 for your program but if the average cost out in the world is $600, you might struggle to get clients. At the same time, don’t short-change yourself! Be confident in your value.
Stuck on your pricing? LaunchKit includes several different pricing methodologies, so you can yell ‘The Price is Right!’. Find out more about LaunchKit.
Launching a business may not be a straight line, and it may not be glamorous, but it is exciting! Just remember to build those foundations and you’ll give yourself every chance of becoming the biz BOSS you know you’ve got inside you.
Need more help?
Ready to make your biz idea happen but need some extra help?
We made LaunchKit for you. It steps you through everything – from building a rock-solid brand foundation to sharing your biz with the world. It also includes a simple marketing plan, a social media guide, website writing templates, real-world examples, handy templates and tools, and so much more.