Spotlight on an Entrepreneur: Starting a New Business
Posted by Celia Couture on Wed, Apr 21, 2010 @ 08:49 AM
Recently, I interviewed Ann Manion, President of Hotel Advantage. Hotel Advantage http://www.thehoteladvantage.com specializes in helping hotels raise their ratings and attract new customers by helping them build strong online reputations. In her more than 20 years working in the hospitality industry, Ann has successfully run several start-ups, making her insights for those contemplating entrepreneurship valuable.
Celia: What do you consider to be the key success factors in starting a new company?
Ann: First you need a business plan, and a clear linear view of how your company will meet a marketplace need. You also need to commit to the long run. Feeling deep inside that you can deliver your product or service better than anyone else helps.
Second, you need to engage in deep thinking, analysis, and market research on the characteristics and behaviors of your ideal customer. Gain deep knowledge of their needs so you can tailor your services and core messages to that niche. When you have a well-defined target market, it allows you to be efficient in connecting your message to that audience. I strongly encourage entrepreneurs to talk to their prospective clients before starting a business. I promise you will gain important feedback that shapes your plan and direction.
Finally, you need money. I suggest a minimum of $5,000 for even a modest start up. If you're opening an operation of some kind (involving leases, employees, inventories), you will need to secure significantly more capital resources based on your projections. If you fail to secure adequate financial resources to support your plan, you risk floundering. And, your goal to become a leader in your field becomes harder.
Raising the capitol you need to start a business is your first test, and shows others your level of commitment.
Celia: Now, I know you had another business before Hotel Advantage. How did you make the decision to move in a new direction, to start a new business?
Ann: Three years ago I was running a consulting firm called A Fresh Start Marketing. I enjoyed steady business, but there was a problem. My client mix was unhealthily diverse. For example, I had clients that sold products, services and everything in between.
Here was the root of my problem: I am not a salesperson. It was easier for me to to do the business that knocked on my door rather than qualify and select clients that best aligned with my expertise and passion.
Because of this acclectic client mix, my business was not scalable. This caused me to do some soul-searching. I spent considerable time evaluating how my practice could evolve in a productive and more personally satisfying way.
One of the smartest things I did was work with select advisors that served as a beacon of light for me during this transition www.ccconsultingllc.com/business-planning.
This business evaluation helped me identify a fit niche for my practice, and one that better matched my hospitality expertise. Recognition of my true career destination led to a rebranding of my marketing practice. Changing course is not easy, but led to great things.
Part 2 of our conversation covers what Ann has learned as an entrepreneur. She shares her successes and her cautions. Subscribe to our blog via the celia@ccconsultingllc.com to receive a notification when this, and other business tips are published.