My favorite episode of South Park EVER is entitled the Underpants Business and features a visit to the marketing and business strategy labyrinth of the Underpants Gnomes.
Watch the clip below and then read on.
I speak with many entrepreneurs who do not have a phase 2. Developing a successful business starts with creating a mission statement, establishing your core values, and naturally a phase 2.
So what IS phase 2, and what companies really never had one at least at their start?
Back during the dot com boom I heard a story about WebMD. Millions if not Billions of dollars were spent building a website that would offer free medical information to doctors and patients.
Phase One: Spend tons of money building a website where people can find medical information.
Phase Two: ??
Phase Three: Profit? Really? People visiting a website for free = profit?
Phase Two is HUGE! Profit margins, shipping costs, inventory, office space, advertising and marketing are just a few parts of phase two which must certainly be thoroughly analyzed before plunging into creating a successful business.
All that I am pointing out is that a great idea for a business might be just that, a great idea, but before jumping right in, slow down and do some serious planning. THEN call a website design company or internet/social media marketing company, and present your entire business strategy including all of its phases.