Research

Keys to growth: Research, innovation, listening

It's tough to research and refresh your strategy when you have a business to run, but talking to your current and potential customers is a good start. Sidnee Peck, director of the Center for Entrepreneurship at the W. P. Carey School of Business, writes weekly on topics of interest to entrepreneurs.

2014-09-22

By Sidnee Peck  Director, Center for Entrepreneurship Question: My business has been doing well but is not growing. How can I take it to the next level? Answer: The most important role of any business is to fill a need — to provide value to customers who have a desire that has been otherwise unmet. You should spend some time researching and understanding your customers in a new way to provide proper insight on growth. The two most straightforward ways to grow are to offer something new to your existing customers, and/or to offer your current product/service to a new market. Both can be explored through conversations with current and potential customers. It can, of course, be tough to make time to do the research and refresh your strategy when you have a business to run. This is a concept that author Michael E. Gerber discusses in the book "The E Myth Revisited: Why Most Small Businesses Don't Work and What To Do About It." If you find yourself constrained for time to grow the business because you are too busy working in it, read this book! Once you are able to set aside time for growth and innovation activities, start mapping your business model. I use the Business Model Canvas, and you should be able to get a free download and video at BusinessModelGeneration.com. The site also sells a book to guide you. But once you understand the categories, you can just go for it, with the ultimate goal to keep it simple (bullet points, not sentences). After that, think more deeply about two aspects of your model: your value proposition and your customer segments. What problem are you solving? Are you doing it well? And who is the target market that has this problem (the people or organizations to whom you sell on a daily basis)? Now comes the most important (and fun!) part: start talking to your current and potential customers.

• Do they still have the problem/desire you think they have? Has it changed?

• How well are you meeting their needs?

• What else do they wish you offered that you do not?

• What pains or frustrations do they have related to their experience with you, your product or your service

This process can be enlightening, and it can also be frustrating and confusing. Be sure not to jump the gun on a strategy change just because of one customer's passionate opinion. Keep notes on these conversations and look for patterns. Gather contact information from customers when available. You can follow up with them when you have something new to offer. Also, to be successful in this process, document your plan: To how many people will you talk? By when? How will you measure the results? When will you take the time to analyze and digest what you've heard? I also recommend having a "coach" or accountability manager who will work closely with you on this. This should be a mentor of sorts or someone who understands your business and this methodology. Steve Blank, the entrepreneur who developed the "Customer Development" methodology, has videos and blog posts that discuss this in-depth. You can explore SteveBlank.com and Kauffman Founders School for more information. Finally, your customers may know they want more, but they may not know exactly what they want. You should be actively researching and assessing what tools and technologies exist (in your industry and others) to bring into the business to meet these needs. If you find this process helpful, but you want more support and guidance, you can also check out the entrepreneurship offerings from the W.P. Carey School of Business. We help guide business owners and student entrepreneurs through this process. For more information, visit wpcarey.asu.edu. First published in The Arizona Republic, September 22, 2014

Entrepreneurship Management