Once you hit the 10-year mark as a business owner, something interesting happens. People consider you a bona fide “expert.”
As a result, I have had multiple requests from individuals with the entrepreneurial bug who want me to take a look at their business plan or listen to their pitch.
I almost always say “yes” because I know how terrifying it can be to take the “leap.”
I always start off the meeting by saying, “Tell me about your idea.”
And then it happens.
Like the second half on an infomercial, I hear about every possible feature and benefit of their product/service. You’ve heard the pitch before – “It slices, dices, mixes and will even cut through a brick!”
Unfortunately, most people forget about the most important part of the infomercial – the issue/challenge.
Don’t forget the first half of the pitch.
The exhausted stay at home mom is preparing dinner and needs to cut up a tomato for the salad. She reaches inside a drawer and can’t find one knife that’s sharp enough to do the job. Frustrated, she screams and calls Dominoes.
The simple truth is that the marketplace has absolutely zero desire to hear about your offering until you first convince them that you are solving a problem.
In other words, I don’t care that you’re tired of working for a big firm and want to start your own practice focused on small business owners.
However, I am very interested in talking to someone who can help entrepreneurs understand how to address their cash flow problems.
In addition to simply addressing the problem, you need to be able to quantify/gauge the pain. Is it a huge issue that causes a ton of anxiety (e.g. – entrepreneur who doesn’t have enough cash to make payroll) or a minor challenge (e.g. – you need to file an extension every few years)?
If the problem is significant, you’ll have no trouble finding customers who will pay you a premium. If not, you’ll have to resort to discounting your process to get any new clients.
As with most things in life, the solution is simple. You just need to execute.