by Ernest Oriente

Posted June 20, 2001

Coaching Success

The SOHO SUCCESS LETTER by Judith F. Feld - Success Strategies For The Small Office/Home Office Community

IN THIS ISSUE..........

1. Note To The SOHO Community

2. Eye On The Future: New Markets For Your New Ideas

3. Quotes From The Net: What's New?

4. Subscription Information

NOTE TO THE SOHO COMMUNITY

Dear SOHO readers,

The SOHO community is innovative, creative, resourceful and entrepreneurial. What are you doing with your great new ideas? This month we take a look at developing new markets for your new products or services. We also continue to offer extra material [please send your requests to soho@coachnet.com with the appropriate title in the subject line].

Best regards,

Judy Feld

EYE ON THE FUTURE

New Markets For Your New Ideas!© by Judy Feld

When we get a great new business idea, either from inspiration or from perspiration, what do we do next? Does this idea translate directly to bottom-line results or does it fade away into the vast "might-have-been" of the business cosmos? I. Eureka! A new idea--now what do I do with it? Let's review some of the choices savvy SOHO businesses have traditionally made:

1. Sell the new product or service to our existing customers/clients or familiar market segments.

2. Synthesize: create a plan to sell our new product to market segments that have been successful with similar products.

3. Develop/create a NEW market for your great idea.

The third choice is probable the most exciting, so let's follow this path for optimal results from your new business idea. Your plan depends on a number of key factors: time sensitivity, uniqueness, feasibility...and potential. These factors will determine your methodology as you identify your new markets and plan and implement the necessary market research to test viability.

~~Coach's Comment~~

It's important to understand the appropriate balance among quality, cost, and timeliness in developing and marketing your new idea. If you would like a copy of the article from SOHO #41 "The Magic Triangle" send an E-mail to soho@coachnet.com with "Triangle" in the subject line (without the quotes).

II. How do I find the new markets for my new idea.? If you are determined not to keep selling to your same existing markets, let's take a look at another three-dimensional model for new markets: Deeper, Wider, or Parallel?

. Take your market deeper and narrower (refine your niche).

. Take your market wider (broaden exposure and expertise).

. Work in parallel, using proven methods (from existing products or services) to reach a new market. Or...very carefully...do all three! Some points to remember:

1. New products and services do not necessarily replace the old. Examples: The growth of TV did not mean the end of radio. The introduction of the microwave did not eliminate conventional ovens and ranges. The popularity of VCRs did not kill the movie industry...but each of these industries changed as a result of progress/technology and, in some cases defined new markets.

2. Old and new ideas can be combined, as in the growing number of bricks- and-mortar retailers going online to add E-commerce to the consumer's choices and to become "clicks-and-mortar".

3. If your product or service involves a new technology, then offer new value to new markets. Encourage expansion by adding new buyers rather than just shifting purchases from existing technology.

4. Make sure your growth is healthy--not "growth at any cost". Take the example of Office Depot. In the early 1990's it was the world's largest office-supply chain, serving a predominantly small-business clientele. The company sought continued explosive growth and new markets by acquiring eight independent office-product dealers operating in 20 states, all serving big corporate customers. The results were disappointing. Office Depot wasn't oriented to serve the large-company purchasing agent, and the new acquisitions operated independently with little coordination or a shared vision. The company has been successful in the long run, but, said Mark Begelman (president of Office Depot at that time) "I will be less inclined to acquire and more inclined to build from the bottom up."

~~Coach's Comment~~

The Office Depot example illustrates the importance of careful selection when acquiring proven businesses. When you are exploring new markets errors can be costly, and risk can be daunting. If you would like a copy of the article from SOHO #42 on "Risk-Free Experiments" send an E-mail to soho@coachnet.com with "Risk-free" in the subject line (without the quotes).

III. Market Research: Think of it as insurance for your new idea.

Tips for inexpensive market research:

1. Find a Business School that will agree to do a feasibility study on your new idea as an MBA project.

2. Employ interns to help in your market research efforts.

3. Check out your competitors' websites, to learn about product offerings, industry trends and customer options.

4. Make use of the numerous websites that provide company and industry information--for free. This method of competitive intelligence is a relative recent benefit--not to be ignored. Here are just a few resources to get you started:

Hoover's Online: free half-page snapshots of 10,000 (mostly public) companies. [There is a fee for the full profiles.] http://www.hoovers.com

SEC's Edgar database: official SEC filings from public companies http://www.sec.gov

Fortune 500: http://www.pathfinder.com/fortune/fortune500/index.html

Inc. 500: database of the fastest-growing companies in the country provides information on thousands of privately held companies that have made this list in the past eight years. Included are revenue information, profit-and-loss percentages, number of employees, and web links. http://www.inc.com/500/

CNN: http://www.cnn.com

5. Run your own focus groups. Take on some or all of the components for running a focus group and save a big percentage of the $5000+ price you would have to pay for each in-person session.

6. Do virtual focus groups, by telephone. Ask us about Coaching Success TeleForumsT for big savings on your company's focus groups. They are easy, efficient and cost-effective. Send an E-mail to soho@coachnet.com with "Focus Groups" in the subject line (without the quotes).

Coach's Comment

For some tips on developing and using your listening skills you can request the article "Stop, Look and Listen--For Market Research". Send an E-mail to soho@coachnet.com with "Listen" in the subject line (without the quotes).

QUOTES FROM THE NET

New ideas--myth or magic? Opinions from two famous people:

"There is no such thing as a new idea. It is impossible. We just take a lot of old ideas and put them into a sort of mental kaleidoscope. We give them a turn, and they create new and curious combinations. We keep turning making new patterns, but the are the same old pieces of glass that have been in use throughout all the years."

Mark Twain

Man's mind stretched to a new idea never goes back to its original dimensions.

Oliver Wendell Holmes

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