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Large technology companies and small businesses face the same basic problems. They both have to understand their customers, manage costs and monitor competitors. However, technical companies deal with these challenges with processes that most small businesses never implement.
The way your two worlds will start, and I promise you: these five technical practices are worth stealing. They do not require fantastic software or a huge team. Just consistency.
Related: How ineffective processes hurt your company
Customer’s personality understanding and “tasks to perform”
Technical companies and successful large corporations try to understand their customers well. It is much more nuanced than “we serve young professionals” or “people in this neighborhood”.
Let’s take Starbucks as an example. They only sell coffee to “coffee drinkers”. They have different customers’ staff: a hurried morning commuting, which is primarily appreciated by speed, a distant worker camps for hours (who should probably pay, honestly) and a crowd of social encounters with the café as a place of gathering. Each personality manages different decisions on how their trades are set and operated.
The key is to understand what work your customers ‘hire’. No one bought a quarter -inch drill because they want a quarter -inch drill. They want a quarter -inch hole. Maybe they are the first homeowners to hang shelves. Perhaps it is wood processing fans build a bird house. These are the various jobs to be made, the industrial standard framework of Clayton Mr. Christensen.
That is why Apple des does not sell “smartphones with good cameras”. They sell the ability to capture your child’s first steps in stunning brightness. The task that needs to be carried out is not “your own technology”. It is “maintaining memories”.
What work does your customer hire you? Find out to see the opportunities that your competitors are missing.
You escape customers and you don’t know
Product managers and technology companies obsessed with retention. If your customers do not return, they will probably not get valuable to the product and the company does not have the product market. Even if you get many customers now, you will eventually lose them and spew them in forgetting.
You don’t need a fantastic system. Just make a table and start watching. How many customers from last year still buy from you today? If this number causes you to have a problem with the outflow.
Your table can monitor the history of buying all customers. When will customers usually disappear? Three months? After the purchase? Now try to understand the reason. Did they cease to like the product or service, found a cheaper alternative or just forgot? If e -mail or call a few people to ask you, you will have an answer.
Your existing customers have believed that you will make you Entergh a chance. Understand their problems and make them faithful fans.
Related: 3 clients’ pills clients that that must be impress
Know your cost
The unit economy is magical mathematics that allows corporations to be enlarged and profitable. What is it worth business for every thing sold? Small businesses often monitor overall expenses, but forget them to assign them to each product and services.
Let’s think about your neighborhood sandwich store. If the supply bakery has increased its prices by 10%, what does it mean for the edges of each sandwich on offer? Are they profitable and how much?
The cost of tracking details can be difficult and tiring. It is not only materials, but also work costs, transaction fees, packaging, etc. However, at present, detailed costs are not at best and in the worst case. You could lose money on some items while others subsidize them. Or, worse, the obvious “Best Seller” could bleed that dry modest parties offering you all your real profits.
Create a spread sheet today. List of every product and service. Assign all costs and do not forget to include everything. Update it when your cost changes. I guarantee that you will find a surprise that will change what you sell or sell it.
Learn from your competition
Go down the street and try your competition. In the new town? Go to the store in the same business as you. Yes, actually pay for something. What works? What is frustrating? What is the service? How does it compare it?
This will introduce you to the approaches to the tax tank. You can learn from what others are doing well and avoid their mistakes.
A shared document is happening where your team can regularly add information. Make this part of your culture, not an occasional panic reaction if the sales are immersed.
Your Personal Board
Advisory corps for Startups Silicon Valley Startups Assembly representing industrial veterans, subjects and entrepreneurs. Owners of small businesses often try to find out to even make sure they consult an accountant who juggles 200 customers.
Your advisors should not be just friends to verify your ideas. You need people who will question your thinking, identify blind places and combine you to opportunities. You need expertise you don’t have.
You don’t make you offer your own capital as technology companies. Many experts will advise you on reasonable fees. Sometimes veterans or later career veterans lead you only because of the intellectual challenge of the new problem. Be sure to formalize the relationship and talk to them regularly.
Related: How to create an advisory board that drives the success of startup
All these practices share one quality: they complement the feelings of the intestines with systematic processes. Your instincts still care because you know the intimation of your company – but these systems that instincts are missing.
As the owner of a small company, you are more agility than large corporations. Add your systematic processes to your activities and become really dangerous.
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