How to start a business that will deliver profit monthly - Part 2

Hello everyone, thank you for joining us today again as we deal with the topic of starting a business that will deliver profit monthly. We started by talking about solving problems for a large market. Remember this is a 3 part series which addresses solving problem for a large market, , we’ll focus on the second part of the series which is developing a clear value proposition and the third part is where we talk about effective distribution channels for different types of businesses.

So lets talk about developing a clear value proposition.

Lets identify 2 problems and develop a clear value proposition. At the end, the business I’m going to use as an example might not fit your industry but I’ll drop guidelines so you can replicate in your own industry.

Every weekend, there are events - from birthdays to weddings to get togethers…name it. Weekends are weekends for a reason - parties! One problem about 80% of these events encounter is the need to serve cold and chilled drinks. Usually, as with most events, refreshment comes in later towards the end and drinks would be already warm by then. The current way people solve this challenge is that they buy ice blocks and this leads to another challenge of storage. Now they need to also buy or hire loads of drums to house both the ice blocks and the drinks. Then there is the problem of finding nearby ice block factories so you can cut down on the cost of transportation, then another problem is the transportation itself. You need to hire a bus or van to bring it down. Thats a lot of expenses and headaches going into serving drinks for your guests…

Now a second problem also within the same industry is this: People need to transport perishable goods across long distances, maybe between storage facilities or to the end users or even to large chains of supermarkets. Farms also need this service to prevent their goods from going bad while on the road. Statistics say there is about 60% of wastage that happens in the food industry between the farm and the market. This needs solving desperately.

Is this market large? Yes.

Can a sustainable business be built around it? Yes.

Can you make profit solving these issues? Yes.

Great. Now that we have a problem that a large number of people need to solve, let’s get to the solution.

A cooling van.

I know it’s an easy answer. You’ve spotted this opportunity but to solve this problem, you need to purchase a cooling van which has the ability to keep drinks cold for as long as 24 hours, so even if refreshments come in the evening, drinks are still served cold, not only that, you’ve solved the problem of the organisers needing to buy or rent drums. Let’s assume you are doing this and it’s going great then you decided to also play in the space of transporting perishable goods from farms or between storage facilities. So now you have a cooling van engaged all week transporting perishable goods and on weekends, you focus on servicing the buzzing event industry - cool. Large market and sound profit. Now how do you cut out a clear value proposition for this market?

The first thing we are going to deal with is audience segmentation. Why is this important? Remember your service is targeted at 2 industries, both the buzzing weekend event industry and transportation of perishable goods. Those are two different audiences and you need to be able to create a compelling use case to land clients for both cases. 

In 60 seconds, let’s approach a major even organiser who is facing the ice block challenge. 

Your goal is to get this organiser to leave their inefficient method and hire you to handle that aspect for them. Your proposition should involve - problem statement, your unique value proposition, why you are the best to solve it, traction/social proof/guarantee of quality delivery, offer.

There are six major objections you’ll face:

1. Do you have sound understanding of the problem and the solution?

2. Do you have the necessary skills to pull off the job?

3. Will your solution relieve the customer of the headache totally?

4. Does your pricing fit into the budget of the customer?

5. How fast/efficiently can you deliver when compared to the current solution?

6. Why should the customer, beyond every objection, say yes TODAY/NOW?

So, Tom, I understand how busy your weekends are especially as you are one of the top event organisers in this town, it costs you 5k more and about 3 hours of time implementing your current solution. Time is precious and every minute matters especially in an industry like yours where the pressure is high and there is no room for mistakes. I’ll like to knock one problem off your plate for half what you currently spend and take all the headache and planning away from you so you can focus on delivering an excellent event. 

Our new cooling van is able to keep drinks cold for up to 24 hours, I’ve been in the event industry and know this city well. Our bus will arrive 30 minutes before the event starts and we’ll even handle the distribution. If you look at it, you’re saving 2.5K and don’t have to bother about drums and ice blocks ever again and hey, I’m willing to give you a trial so you can see how easy it is to work with us, this weekend, instead of 2.5K, let’s do 2k but that’s if you put pen to paper now…and don’t worry about upfront payment. We’ll pick up and deliver first, then you pay after the event. What do you say?

Your guess is as good as mine. Tom is going to say yes. You’ve put up a good offer, broken down his pricing barrier, you are taking away the headache of planning and tracking ice block transportation and hey, he doesn’t even have to pay until you deliver! He’ll go for the offer. 

Now, this is a broad topic, we only talked about audience segmentation but there’s a ton of other resources we could share about creating a clear value proposition. Each other six objections we mention above are full topic on their own. But hey, we’ll always find the time to share insights. We’ll stop here today but we’ll be back tomorrow with the final section of this series which is distribution. 

If you found this helpful, consider sharing so others who need valuable insights like this can also benefit. Hala is free…cheers

THE END

At Hala, we believe that consistency is greater than intensity. Thats why we are building  our community around the principles of improving with just 1% daily; which  compounds overtime into something remarkable. Hala is going to be a fine blend of creatives, experienced doers, starters and dreamers. We are founded on the strong belief that ultimately, we hold a duty of care to others in need. We want to balance access to opportunities regardless of colour, background, faith or income level. We value Integrity and highly regard dignity of labour within the Hala community. As a community, our success is measured by how many dreams are achieved, those broad fulfilling smiles when help arrives and how well we are able to impact humanity. These principles are consistent with Bible teachings where we draw our faith and inspiration from. You are welcome to join Hala, you’ll discover practical tips you can start implementing today to stay ahead in business.

We are on Youtube and Twitter. Hala V2 will launch when we hit 2k subscribers and we'll distribute our community token to early adopters like you. Consider helping us arrive at the future faster by subscribing to our newsletter sharing this newsletter to friends, enemies and family :) 

Since you’re here and you enjoyed this, looking to start/scale your business? I’ll like to help you develop clarity on a 15 minute call. Pick a date on my Calendly here; I hope this thread helps someone

Hala V2 is coming! We'll distribute our community token to early adopters like you. Consider helping us arrive at the future faster by sharing this newsletter to friends, enemies and family :) Reply this email requesting more information on Hala V2 and our founder will be in touch with you.