You've Setup Your Business, Now What?

It’s been 6 months since Kevin attended the wedding reception that spurred his “Eureka” moment to start his catering business. The small chops were like sawdust and most wedding guests left their plates untouched. At that moment Kevin had the idea, to set up a small chops business that provided delicious small chops in packs that retained their freshness and hotness for up to 8 hours.

Kevin was bursting with recipe and packaging ideas. His imagination was filled with the endless possibilities like franchising the business across the globe.

Kevin has finally successfully set up his business in Lagos. He’s found a shop in a good location with considerable foot traffic, registered his business, created recipes, come up with a brand logo, hired 3 employees, set up a website where customers can order and he’s come to the realisation that as fulfilling as running a business is, it is hard work.

To get more customers, he reached out to HR departments of different organisations to offer discounts for staff events like birthday and send-off parties. The response has been encouraging. He also recruited skateboarders to distribute his flyers around town, and offered the best price around town. For Kevin, it has not been all a bed of roses, but being able to create a business, and successfully market his brand has exceeded all his expectations.

Have you ever heard of the concept 4 P’s of marketing? Yes, letter “P”! 

Let’s examine how these P’s have played a role in Kevin’s relative success so far. 

1. Product. Kevin sold small chops as his product. He identified a need for fresh small chops, at most events. As a business owner, you need to create a product that provides value to your target customers. Your product should provide adequate satisfaction to your customers and portray your value proposition. A unique product i.e. goods or service with an attractive value proposition would enable you to compete favourably with competitors and make your brand outstanding.
2. Price. Kevin provided quality products to customers, in exchange for a price. The price of a product, is the amount paid in exchange for the value received. Price is dependent on the value obtained from the product, competition, and affordability of the product. You want to create feasible pricing on your product, that accommodates your profit margin. While estimating pricing, consider if the perceived and delivered value is in line with the price of your product. How realistic is your pricing connected to the realities of sourcing for raw materials, competition, distribution, economic environment, e.t.c.? What options can you offer for users to afford your product, discounts like Kevin? It is important that you price your products to attract your target customer.
3. Promotion. Kevin needed to reach as many customers as he could, to make a reasonable profit on the price of his small chops. He employed both offline and online promotion efforts to reach his target audience. Promoting your business is a means of communicating the value of your product to target customers. Promotion provides you the opportunity to present product benefits, answer customer needs, and cause buyer action. Promotion involves all the direct and indirect means of expressing your brand, benefits, offers, discount, e.t.c. to people who need your service. It is the whole combination of advertising, wordof-mouth, publicity, public relations, referrals, discounts e.t.c. Make sure the messages from your promotional activities resonate with your target audience. 
4. Place. Kevin had a shop where customers could walk-in to purchase his products, he also had a website through which orders can be placed. Once you’ve created awareness about your product, you need to inform customers about the places where they can purchase your products or access your service, which can differentiate your business from other competitors. Your place of business is any point where your product meets your customer. You need to consider the ideal place or location to offer your service or sell your goods. Physical business locations allow customers to have a feel of your goods. Online marketplaces i.e. e-commerce platforms, provide convenience for the customer. Considering your product, you might have to figure out which is the best place to sell your product. A combination of both online and physical presence provides a wider market for your product.

Like Kevin, to effectively convert customers for your business, be strategic and deliberate about your 4P’s.

This content was developed for the LSETF by DIYLaw.ng