5 Pointers on Launching a Business
Here below are some notes to take before launching a new business (Offline - small business, I meant)
Digging deep
For example, if you are going to start a football turf in an area, I would go to the nearest 3-4 turfs almost every day for a couple of weeks to understand the repetition rate, the age group which is showing up the most, the normal peak hours and days, the pain points that the people coming in are facing etc.
2. Finding out the exact potential
Continuing the turf example, after finding out the most active age group that is coming to the nearby turfs, I can get the data of how many people are there nearby (say maybe 10 KMs in radius) which are falling under that age range. That is my total market size - let it be 10,000.
Also, I’ll need to understand how many percentages of those could be interested in playing football - I can figure it out by looking at the footfall of the nearby competitors and the total market size.
If it’s 5%, then my total addressable market with be 500. if 50% of those 500 only play during the weekends + Friday, then I should aim at getting 160 players per day during the weekends - which means around 16 slots (considering 10 individuals per slot) per day should be booked. There I have it, my goal.
3. Calculating the breakeven metrics
I should calculate how much time would it take for the turf to break even. I am not going deep here because the numbers could make things very complicated. The idea here is to focus on making the first $1 as profit as soon as possible without compromising on customer experience.
4. Making an automated system for it to run on itself
How many people should I hire for housekeeping + reception? How can I ensure the customers are getting the best experience from them? How can I integrate computers and digitise everything from booking to marketing to registering complaints? How can I incentivise the staff for better performance and how can I make them accountable?
5. Promotions
Is there a way that I can get more repeated teams coming back to play at the turf week over week? Maybe introducing a streak system might help that, there could be offers clubbed to the consistency of bookings - and if the streak is broken they might have to start from scratch again.
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