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Our Mission
The
mission of the African American Chamber of Commerce of New Mexico, Inc.
is to promote and empower African American businesses, communities, and
organizations by promoting growth, economic development, and expanding
entrepreneurship within the State. Read More. . .
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Our Mission
The
mission of the African American Chamber of Commerce of New Mexico, Inc.
is to promote and empower African American businesses, communities, and
organizations by promoting growth, economic development, and expanding
entrepreneurship within the State. Read More. . .
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Contact Us
The African American Chamber of Commerce of New Mexico
Physical Address:
100 Arno Street Northeast
Albuquerque, NM 87102-3448
Mailing Address:
PO Box 8920
Albuquerque NM 87198
505-243-3949
Fax 505-243-1504 Read More. . .
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AFRICAN AMERICAN CHAMBER OF COMMERCE NM, INC.
"Our Business is to Make Your Business, Better!" |
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THE 20 MOST IMPORTANT QUESTIONS IN BUSINESS
Companies fail for a host of reasons. Bad luck plays a role, sure, but disaster usually strikes because of a more fundamental flaw -- in the original idea, the strategy, the execution or all of the above.
What entgrepreneurs can do is ask the core set of TOUGH questions that govern the fate of any enterprise!
1. What is your value proposition? -
This is the single most important question of the bunch. If you can't explain -- in three, jargon-free sentences or less -- why customers need your product, you DO NOT have a "value proposition." Without a need, there is no incentive for customers to pay. And without sales, you have no business. Period.
2. Does your product address a viable market?
Entrepreneurs are passionate to a fault. Many fall in love with an idea BEFORE confirming that there's any viable market for it, let alone one large enough to attract investment capital. If a market doesn't yet exist, the toxic term of art here is "white space" - they assume they can create one. (Hint: There may be a reason for al that white space).
3. What differentiates your product from
competitiors'?
Few companies can rely on, let alone afford, CLEVER MARKETING SCHEMES to separate themselves from the competition. Yes, Starbucks made people believe they wanted $4 caffeinated concoctions, and Louis Vuitton lulled people into shelling out $1,500 for denim handbags, but those are the exceptions that prove the rule, "if you want to win in business, you need to offer something tangibly valuable that the competition doesn't!
4. How big is the threat of new entrants?
If you're smart enough to spy a profitable business opportunity, you can bet competition isn't far BEHIND.
Some barriers to entry -- patented technology -- a storied brand, are more fortified than others, but eventually someone will find a way to do what you do - faster, cheaper and mayber even better.
If not a direct competitor, then a substitute techology might take a chunk out of your hide. (Think what digital film did to Kodak.) The trick: building a loyal following BEFORE that happens.
5. How much startup capital do you need?
Any early stage investor or small business consultant will tell you that most businesses FAIL because they were UNDERCAPITALIZED. The lesson: Figure out how much you think you need, and then add plenty of extra cusion.
6. How much startup cash do you need to survive the early years?
In case you didn't pay attention to the previous question, take this one to heart! It doesn't matter how much money your business might make down the road if you can't get out of your garage.
Plenty of business plans boast hockey-stick-style financial projections, but run out of cash before the good times kick in. (Remember, all those busted dot-com companies from the tech boom?) Three words: Mind the cash.
7. How will you finance the business?
You have a few choices: Aunt Sally, credit cards (dangerous), angel investors, and if you're really onto something, venture capital. Forget bank loans (at least until cash is flowing in a positive direction). If you can "bootstrap" your business, do it; raising money is difficult and distracting.
8. What are your strengths?
Figure out what your're good at, and stick to it! An obvious notion, perhaps, but plenty of zealous entrepreneurs lose their way, especially when the world seems so full of possibilities.
9. What are your weaknesses?
You may know how to design a widget, but not know a thing about running an effiient manufacturing plant. Apple designs and markets its nifty iPods and iPhones, but lets someone else slap them together. Countless Webpreneurs farm out the design of their sites and Back Office payment systems. Wasting resources just to be MEDIOCRE is suicide. Stick to core competencies and find trusted partners to handle the rest!
10. How Much Power Do Your Suppliers Have?
Convincing customers to buy your products is tough enough without suppliers breaking your back. Basic rule of thumb: The fewer the number of suppliers, the more sway they have. Take the steel industry, which relies on a handful of companies for its iron feedstock . If two of those big guys sould get together -- as BHP Billiton (nyse BBL ) and Rio Tinto (nyse: RTP) have been discussing, they would have signifiicant pricing power, potentially crimping steel producers' margins.
On the flip side, beware getting hooked on low-cost providers! They don't always keep an eye on quality.
NOTE: This article to be continued in our June e-blast (questions 11-20) |
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Sincerely,
Ron Hinson
African American Chamber of Commerce of New Mexico
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