131 - What Type Of Business Do You Want

Have you stopped and considered the type of business you want to have? And when I say “type of business” I’m not talking about deciding between opening a coffee shop or a bakery.

What I’m talking about is how are you planning to set your business apart from your competitors. Will you:

  • Provide the fastest service in town
  • Have the most advanced technology
  • More locations and therefore be more accessible and convenient
  • Have more extended trading hours (start early and finish late)
  • Have the largest range
  • Provide the highest quality
  • Have the best-trained team
  • Have the lowest prices 

Knowing the answers to these questions will: 

  1. Help you set your prices and fees, and
  2. Have direct influence on the type of clients and patients you attract with your marketing campaigns.

Location Does Not Equal Success

For simplicity, I’ll stick with using a coffee shop as my example because it’s a very competitive, busy market and everyone has a favourite coffee shop they like to meet.

When you look at coffee shops, it’s evident that some are highly successful and others are not so successful. Have you ever stopped and considered why? YES, location can play a huge part, but if a coffee shop in a great location makes less than average coffee, they will not last long. Convenience only goes so far.

Closer Look

Most successful independent coffee shops roast their coffee beans, and they do it their way, or they source their coffee beans from a particular coffee roaster for the same reason; they won’t just use the cheapest or most convenient coffee bean supplier, which is essential if they have a competitor close by or competing against successful franchise.

They may also source and offer a wide selection of high-end coffees from various parts of the world.

Uniqueness 

By being selective in their coffee bean suppliers and coffee roasting techniques, it makes their coffee quite distinct from their competitors. This uniqueness sets them apart and allows them to set their prices slightly higher, and therefore this will influence both the clientele they attract and the quality of their barista team.

If you’re looking for a cheap cup of coffee and you're not bothered where the coffee beans come from, and the taste is not a priority, this is probably not going to be the coffee shop for you. 

But if you’re a true lover of coffee and you care about how it tastes, and you want variety from around the world, and you want to experience new coffees, then this is your coffee shop.

If you’re opening a restaurant, a bookkeeping business, a retail outlet, or a podiatry business, the same principles apply again and again. Knowing the type of business you want will:

  1. Set you apart from your competitors
  2. Determine your prices and fees
  3. And dictate the type of clients and patients you’ll attract.

Enjoyment Levels  

In the end, these three factors will determine how much enjoyment you get from your work each day because you get to choose what your business will and will not do.

For example, a coffee shop can choose to serve premade cakes, tarts and wraps, or it could decide to have an onsite kitchen and serve light meals. Once again it comes down to the type of business the owner wants to have and how far they want to separate their business from their competitors.  

Can YOU charge more by offering additional services or products in your business?

Is your business aiming at quantity or quality? This is a huge determining factor when you’re thinking about the type of business you want.

 

“Quality is never an accident; it is always the result of high intention, sincere effort, intelligent direction, and skilful execution; it represents the wise choice of many alternatives.” - William A. Foster

Enjoyment & Profits

To have a financially successful business you need to focus your efforts into the areas of your business you enjoy most and ideally, the areas that have the highest profit margin, or high dollar value per hour – it’s that simple. 

Don’t get me wrong, every business owner can make good money by fulfilling the basic requirements of their chosen profession or trade, which many do, however, if you’re bored with your daily routine, and you want a pay rise, you need to focus your efforts into the areas of your business with the best returns and most enjoyment.

Get The Business Ratio Correct

This doesn’t mean you’ll never do anything again in your business that you don’t like doing; it’s more about getting the ratio right between what you like to do, and what you do not like to do.

It’s also important to identify and stop the activities you should not be doing, especially if you also don’t like them.

Limit Exposure 

If you’re working all week doing work you despise, it’s going to be a long and uninspiring week, regardless of the money, but if you can limit your exposure to what you don’t like it will make your week far more enjoyable.

For example, when I worked in my podiatry business, there were things I did not enjoy doing, but before I applied this principle about getting the ratio right, I did everything because I knew no better.

Eventually, I got to the point where I wanted to leave the podiatry profession and do something else, but a strange thing happened. When I limited my exposure to the things I did not like to do and focused my efforts on doing the things I did enjoy three things happened:

  1. Work was more fun.
  2. I made more money.
  3. And I had more time off.

And when I did have to do the things I did not like to do, they didn’t seem so bad after all, and doing them on an occasional basis was enjoyable. It’s funny how our minds work.

You Must Attend Workshops  

I would love to take full credit for coming up with this realisation about work ratios, however, I first came across the idea after I attended a weekend workshop on how to have a more profitable business.

After I attended this weekend seminar my thinking changed and so did my business. Within three months of attending this weekend seminar, my business turnover doubled, and I never looked back. I can’t stress enough the importance of continually educating yourself and why it’s important to look outside of your profession.

I talk about this event on a previous podcast episode: Adding A Zero To Your Financial Goals

I can’t place enough emphasis on attending events, and this is why I also run my events because I know how much they can help other business people.

When The Student Is Ready 

You may find it hard to believe that one-weekend seminar made such a difference to my life, but that’s all it takes. Unfortunately, you do not know which weekend seminar it is going to be!

There’s a saying, “When the student is ready...the teacher will come”, and this applies to everyone. I have spent a small fortune on self-education and development over the past thirty years, and I will continue to do so because I understand the value I receive.

New Or Existing Business?  

If you’re about to open your own business, now is the perfect time to start asking yourself, what type of business do I want? There is no right or wrong answer – you just need to decide, become focused, and then commit to it 100%.

If you’ve been in business for a number of years and you’re feeling a little trapped in what you’ve created, as I did, don’t despair – just start making small changes now and over time you’ll see the benefits.

Start Small  

The tip is to START SMALL. Do not try to change everything about your business all at once, otherwise, you will create overwhelm for you and your team. I’ve done this before as well and it’s it doesn’t take long for before you go back to the way things were.

Just like exercise, you won’t see much change in the first few weeks, but after a few months, the changes will become evident. Just give it time. 

If you have any questions about this podcast or blog please send me an email: email/tf)(tysonfranklin.com.  

If you like this episode, you will enjoy:

Episode 114: 13 Reason Why You Should Start A Podcast 

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