Online Class: Business Administration 101

Know Who You Are

Think for a moment about how many businesses you visit over a given day. If you stop off for coffee, get gas, shop for groceries, peruse the internet for clothes or electronics, you are supporting a whole host of businesses by purchasing goods and services.

Now pick one. What is the name? Do you visit this business regularly? Why do you patronize this particular store over another? How did you hear about their products or services? How much money do you usually spend during a typical visit? How does this translate to a monthly expense? Would you recommend this place to other people?

If you view your business as a consumer, it will be much easier to set the parameters around who you are and what you do. This includes defining your business and coming up with a name. 
 
What Do You Do?

Many people are choosing to start their own businesses right now. Whether your business is service or product based it is important to define clearly what you do and how you perform your business. By setting up these parameters, you will make gaining business loans, marketing and growing your business much easier. Serviced based business is growing by leaps and bounds. An article called "More Businesses Using Freelancers, Experts Say" on CNN.com (January 14, 2009) says, the percentage of people who are working as independent contractors has grown, according to the Bureau of Labor Statistics.

In the latest numbers available, from February 2005, 7.4 percent of workers--or 10.3 million--were classified as independent contractors--more than a full percentage point higher than in 2001." Given the current state of the economy, many people are freelancing and consulting. These valuable services can benefit from a structured business setup.

Even before you start looking for a catchy name, you must first think about your product and service. Take a few moments and write down what your business will look like from a consumer perspective. Imagine that your business is fully functional and formed and you, as a consumer are writing about your business.

As a consumer or client, ask yourself the following questions:

- What does this business do?

- How does this business serve me?

- How does this business deliver products or services?

- What sets this business apart from other similar businesses?

By looking, objectively, at how your business is defined from the perspective of the consumer, you may find some insights into how to better serve and reach your customer. Read what you've written, now with the fresh eyes of a business owner. Make any changes or jot down more ideas that come through this new perspective. After you are finished, it is time to come up with your business name.
 
Who Are You?

 The best way to come up with a business name is by boiling down your newly written business definition. Go through your pages and choose as many keywords as possible. Let the words that jump out and grab you, be your guide. For example: A woman is starting a bakery. She wants to create specialty cupcakes that bring joy and happiness to children. 
 

Joy, happiness, cupcakes and children are the key words. The next step is to write down as many names for your business as possible. Don't edit yourself; just write the names--as many you want--in succession. When you have collected a sufficient amount--shoot for twenty to thirty--leave the list for tomorrow. As you go about the remainder of your day and through the evening, pay attention to any interesting business names you encounter. You could pass by them on the street, hear them on the TV or even patronize a few.

The next day take out your list with fresh eyes. Choose your top ten. Narrow that list to three and you can move on to another important part of your business setup process--your customer.
 
Know Your Audience

 
The business and marketing term for an audience is demographic. A demographic is a specific group of people defined by age, sex, location and a variety of other categories you may choose. An easy way to understand demographics is by its use in network and cable television shows. These shows use demographic ratings to find out clearly who watches the show. Usually the demographic is broken down into age and location. The networks can then use the demographics to choose specific advertisers to run while the target audience is watching.

Depending on your budget, you can find your audience in many ways. By using techniques such as: market research, web research, and one-on-one interviews, you can gather some important data that will serve you in all areas of your business. To understand the manner in which you want to market your business, you must understand who you will serve.

The SBA has compiled a list of questions that will help you get clear information about your potential customers and how they might connect with your business.

- Who are my customers and potential customers?

- What kind of people are they?

- Where do they live?

- Can and will they buy?

- Am I offering the kinds of goods or services they want at the best place, at the best time, and in the right amounts?

- Are my prices consistent with what buyers view as the product's value?

- What do customers think of my business?

- How does my business compare with my competitors?

Marketing research is not a perfect science. It deals with people and their continuously changing feelings and behaviors, which are influenced by countless subjective factors. To conduct marketing research you must amass facts and opinions in an orderly, objective way to find out what people want to buy, not just what you want to sell them.

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