Figuring Out Buyer Behavior
Alternative Evaluation
For my business opportunity, there are many alternatives for people looking to turn their idea into a profitable business. Many of my interviewees questioned whether creating a business without consulting help is worth the time, effort and in the long run, money. Alternatives include taking on an investor or building your business foundation alone. In the consultation and service industry, what matters most is the quality of the service. My interviewees questioned how much experience and knowledge I would have in helping someone create a business foundation with little to no money up front. There is a mixture of quality, style, experience, knowledge and more that helps determine the price in the business consultation industry.
How/Where to buy
The element of my actual transaction will be financed after much of the "building a foundation" work has been completed. The parties involved will just be myself and my client. This segment would most likely be bought online in some fashion, but most of the work will be completed in the office.
Post-purchase evaluation
In the service industry, the biggest questions the clients will ask themselves is, "did I find what i was looking for?" If they answer to that question is yes, then they will most likely be happy with the services provided. The things that will help them determine if the purchase was a good idea or not is simply whether the idea turned into a profitable and thriving business or not.
Summarize Interviews
I learned many things after conducting the interviews about the service industry as a whole. Clients will make[ decisions about whether the service was quality before the entire transaction has been completed and at any moment, they can change their mind about the quality of the service. I also learned when people are paying for a service, they are paying for convenience as well. There is a difference between convenience and service, but they do work hand in hand.
Conclusions
Trying to begin a consulting firm that does not take cash up front is very risky in financial terms. There will be many more losses than wins, and more businesses that fail than businesses that thrive. I also think this type of business can be very rewarding.
Hi Walter!
ReplyDeleteI really enjoyed reading about your potential customers' buyer behavior process. I think it was especially interesting that you mentioned that the service industry in general is very dependent on consumers' perceived quality of service. Since there is not a tangible product when dealing with these type of products, perception does seem to play a significant role in whether a consulting firm will succeed. I believe it will be imperative for you to explore the different factors (including convenience, as you mentioned) that affect perception of quality going forward.