The Entrepreneur That Knows: Turning Intellectual Capital Into A Business (Part Three)

As people are becoming more and more connected through the evolution of technology, the ability to share information is also becoming much easier. Additionally, the barriers of entry to entrepreneurship are becoming lower and lower as well. With both of these occurrences taking place, along with the increased emphasis on a knowledge-based workforce, entrepreneurs are finding themselves in a position to be able start enterprises where their primary product of service is their information.

Of course, in order to do so, you need to establish yourself as a subject matter expert in your market. Below are a few of the most basic considerations you need to think about when getting started as an entrepreneur providing knowledge.

1.      Determine Who You Service

Early in your business, you are going to be eager to work with any and everyone who is going to be somewhat interested in your business and you will want to help them in any way to get their business. My first piece of advice is STOP! You cannot be everything to everyone. You need to narrowly define who your customer is and segment them based on demographics which would align them with your product. And what I might be align is that your customer segment, as a whole, should generally have a problem to solve or a task to complete in which your information is going help them accomplish and the value of accomplishing that is work spending money on.

2.      Sell What You Know

While this seems obvious based on the topic of the blog series, in reality, we not only want to be everything to everyone, but we want to give them anything they are willing pay for it. Again, STOP! In becoming a subject matter expert, your expertise is in a subject, not every subject. You may even have a few different subjects which are interchangeable or go hand in hand with one another, but you cannot, and do not want to just help them with everything, especially if it’s outside of your domain expertise. If you don’t fully know the subject which your client is looking for some assistance on, do not pretend that you know. As I mentioned in Part Two, your value is in your results. If you doubt your ability to provide results, then refer them to someone else who can give them better results in what they are looking for. At the end of the day, you do not want to compromise the value of your business because you are trying to provide information that your business doesn’t exist to specialize in anyways.

3.      Marketing Matters – A LOT!

Information is everywhere now. The simple fact that information is now so accessible is at the core of why information-based businesses are expanding so rapidly. This generation of Americans is more educated than they’ve ever been before, both formally and informally. This does not mean that everyone has your knowledge. Like I explained in Part One, your blend of information and experiences create a competitive advantage both in the workplace and in entrepreneurship. That said, it’s not always the one with the best information who gets the most attention. Often times, it’s a matter of branding and marketing. If the most valuable information in the world is difficult to find, it’s not going to be used. You need to make sure you are visible and communicate your value every time someone has contact you’re your brand.

4.      Pricing Matters Even More

The reason your business is likely exist is to make a profit. Your customers’ goal in working with you is to fill a need which is currently going unfulfilled at this time. How they value what you offer is expressed in how much they are willing to pay in order to accomplish what they want done through you. Your pricing should be based on who your consumer is, what they want done, and how well you are able to communicate to them the value of them achieving their desired outcomes to you. The important thing to note about pricing is that it’s not just how you get paid, but it also directly communicates your value too. You can have great information, solve a challenging problem, and have amazing marketing, but if you’re pricing far below what you’re worth, you’re customer will never see the full value. Pricing too low isn’t just about leaving money on the table. It’s about diminishing the worth of your business in general.

5.      Don’t Do It Alone

Starting a business isn’t easy. Over 50% of new businesses go under in their first year and more than 70%of new product launches are flops. Start-ups and enterprises alike see failure but their ability to recover is not the same. One disappointing product launch in a Fortune 500 company might be considered a learning experience while the first-time entrepreneur can see everything they have vanish. The good news is that plenty of business, some probably similar to yours, have been successful and there resources available to help you minimize your risk.

As a career, business, and leadership coach, I would love to be able to help you in your venture if you are thinking of starting your business. While the information I’ve covered in the last few days have been useful (I hope), there’s only so much you will get from reading blogs, articles, and books. Learning and taking action are two totally different things. If you’re interested, please click here to start the process and set up your free consultation now.