Successful businesses share a common attribute: They do something useful for their customers. One way to determine what is useful for your customers is to identify and describe the problem that your business will solve.
For example, a window washing service solves the customer’s twin problems of wanting clean windows and lacking either the time or physical ability to clean windows himself. If you accurately understand your customers’ problems and needs, your business will have a better chance of success.
For example, here’s a problem faced by a customer of a pizza-by-the-slice stand: “I’m hungry and I don’t have much time or money, but I’m tired of hamburgers and want a change of pace. Also, I’d like to be able to specify the exact ingredients I want in my meal. And, it would really swell to have a glass of wine or beer with the meal.”
Now, think about your customers for a minute. What is the problem that you solve for them? Write out your description of the problem your business solves for its customers. This statement will become part of your completed business plan.
Problem Antoinette’s Dress Shop Will Solve
Professional working women like to buy fashionable, slightly conservative clothing at moderate prices. Th ey prefer shopping at convenient times and patronizing stores that offer a wide selection of merchandise. These women like to talk to sales clerks who understand fashion and know their store’s merchandise; few clerks in the local department stores have this knowledge. At the present time, many of these women travel 45 miles to shop because no local store meets their needs or carries today’s most popular labels.
Business Description
Next, describe how your business will solve your customers’ problem. Take your time and do a thorough job. It’s very likely that the fi rst time you attempt this task, questions will occur to you that you didn’t consider previously. If so, fi gure out a good answer and rewrite your description. The important thing is not how long it takes to do this, but that you end up with a realistic, well-thought-out business description. After all, it’s cheaper to answer questions and solve problems on paper than it is with real money.
Your business description should explain exactly what you will provide for the customer as well as what you’ll exclude Each of the choices you make in your business description will affect the amount of money you’ll need to start or expand and how much sales revenue you can expect.
Consider the following series of questions when writing your business description. If you answer both the general business questions and each question that applies to your business, you’ll present your business accurately and fairly.
For an example of a well-thought-out business, refer to the accompanying sample, which contains the first draft of Antoinette’s Dress Shop’s business description. You will find three additional business descriptions in Appendixes A, B, and C at the back of the book.
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