Business Idea
Finding and securing a suitable position is a complex and challenging process that requires substantial time, financial, and emotional investment. The U.S. Bureau of Labor Statistics (2023) suggests that a job search may take up to 4-5 months, with the national average rate of unemployment duration reflecting it. Meanwhile, searching for the first position after graduation may last an average of 3-6 months (University of Washington, 2021). However, the statistics do not reflect the individual journeys of applicants in different career fields and at various points in their careers and do not account for their challenges.
The proposed business idea is establishing a venture that provides interview coaching services for recent graduates and people changing jobs. This deliberate narrowing of the target market sets the business apart from similar projects. Therefore, by choosing this service over the alternative currently present in the market, the customers can expect the benefits of the service tailored specifically to people entering the workforce or a new industry.
Target Market
The chosen target market for the proposed service is new graduates wanting to join the workforce and people planning on changing careers. These groups have a significant common characteristic: they seek to enter a new career field. They may need to be more familiar with how the interview process works in their industry of choice.
Transitioning from education to employment is highly complex (Kalita, 2023). It can be compared to transitioning from one career field to another, as structural differences between sectors can prevent a seamless changeover. Therefore, the primary need of the target market is familiarization with the specific sectors, the interview process in those sectors, and general requirements for cover letters and resumes. In addition, potential customers prefer personalized service, which could help them secure a position in the desired field despite being new to it.
Pricing and Revenue Model
The proposed service would incorporate a transactional revenue model and bundle pricing. A transactional revenue model is relatively straightforward and comprises payment for a service or product provided (Hung, 2022). Thus, the customers will be expected to pay the stated amount for the offered service or set of services without the expectation of ongoing payments from the customers.
According to Chew (2022), the simplicity of the revenue model is likely to attract a substantial number of customers. However, as many other ventures offering similar services are likely to opt for this revenue model, it increases competition and contributes to rapid price deterioration (Chew, 2022). Therefore, the company should be prepared for a potential depreciation of the services on the market.
The bundle pricing strategy is to be employed to mitigate the potential disadvantages of the transactional revenue model. The bundle strategy allows for combining two or more products or services and selling them for a price traditionally lower than if those same items were to be offered separately (Campbell, 2020). Thus, the company will benefit from providing potential customers with a selection of services and allowing them to create the service bundles that they feel are the most appropriate for them.
For example, resume writing, interview coaching, and mock interviews can be offered separately or as a bundle, with customers having the option of removing or adding different services. This approach will also negate the disadvantage of bundle pricing, in which customers are forced to acquire products or services they do not need as part of a bundle (Campbell, 2022). Overall, the proposed pricing strategy will contribute to customers feeling more in control of their choices and opting for the services the venture provides instead of its competitors.
Marketing and Sales Strategy
Considering the target market of the proposed service, the company’s marketing strategy should focus on social media and online marketing. Brand-related social media use will be heavily leveraged to spread awareness of the provided services and attract potential customers. The marketing strategy should go beyond posting the advertisement of services and include blogs on changes in the industry, labor laws, legislation, and relevant statistics (Nwachukwu, 2022).
In addition, the experiences of professionals from different industries in securing their first positions can be shared on social media. Furthermore, the venture will build business relationships with local companies and educational facilities to reach potential customers. Advertisements through colleges and universities will help attract graduates interested in the company’s services. Meanwhile, affiliation with local businesses may help connect customers with potential workplaces.
The consultive selling strategy is most appropriate for the proposed service. Considering the importance of finding the first job following graduation or entering a new field, creating a meaningful connection with the customer and ensuring their needs are heard and understood is crucial. According to Taylor (2023), consultive selling focuses on building a relationship with customers, exploring their needs, and offering the service or product that is most suitable for them. The consultive selling strategy aligns well with the bundle pricing strategy, allowing the company to recommend a variety of service bundles to consumers. Moreover, the bundles can be adapted to the customer’s expressed needs.
Future Growth Opportunities
The proposed service has several opportunities for growth and expansion. For example, partnerships with major companies in different industries can be established. This would allow the company to connect the customers with employers. Furthermore, HR personnel working in partner companies can be invited to give lectures or seminars on their company’s approach to recruitment.
In addition, a mentorship program can be established, with customers whom the company helped secure their desired positions acting as mentors and sharing their experiences with others. Considering the venture’s heavy reliance on social media marketing and the potential to facilitate networks and interactions on social media platforms, a mentorship program can create additional value for the company (Li et al., 2020). However, it is not recommended that the company expand the target market as it may lose the focus that provides it with advantages over the direct competition.
Business Planning
Business planning is a crucial step in launching a venture, and negligence in crafting a comprehensive plan may translate into failure to successfully enter the market. Therefore, when creating a business plan, one should be precise, thoroughly explore the target market and the needs of potential customers, and research the possible competition. In addition, when creating a plan, it is important not to overestimate the likely income and value and the approximate timelines for launch and the business becoming profitable.
Financial Management
Financial management is of great importance when starting a business venture. One should create a comprehensive financial plan, a budget for each potential expenditure, and clear goals. However, the budget should be moderate and account for unforeseeable expenses. Moreover, all the spending should be tracked and analyzed to detect unnecessary costs that can be cut without disadvantaging the company. Furthermore, the financial plan should be updated every quarter to reflect any changes, new expenditures, and new goals.
Operations and Logistics
The proposed service does not initially require logistics as no transportation of goods is involved. Operations management in the service industry should focus on planning, scheduling, and coordinating the necessary processes to meet customer needs. In addition, tools to measure customer expectations and customer experience should be incorporated to achieve the set goals. It is essential to respect employee reports and customer feedback on everyday operations.
Marketing and Branding
Entrepreneurs should design the brand, including the logo and name when starting a business with customers in mind. The initial marketing strategy that will shepherd the company’s entry into the market should be straightforward, clearly define the target audience, and highlight the service benefits to it. In addition, the marketing campaign should not be overly complex or treat potential customers disrespectfully.
As the campaign will be carried out primarily through social media platforms, its goal is to foster an online community of potential customers. It should be noted that the data gathered from the established community should be used to analyze customer needs and improve the offered services to meet them. Thus, the campaign will focus on the short-term goal of the initial launch and the long-term goal of continuous advancement.
Team Building and Leadership
When starting a business, a fair amount of time and effort should be dedicated to building an effective team to help the venture achieve its full potential. It is vital to leverage the individual strengths of the team members, adjust the management strategy to maximize employee potential, and schedule team-building activities (Vargo, 2023). At the same time, it is essential to avoid micromanagement as it may damage workplace relationships and decrease productivity (Ndidi et al., 2022). Overall, the leadership style can determine whether the venture is successful.
References
Campbell, P. (2020). Price bundling: Definition, strategy & examples. Subscription business financial metrics. Web.
Chew, C. H. (2022). Descriptive review on business models for IT industry dating year 2022. Open Aire, 1–29. Web.
Hung, J. (2022). What are the best revenue models for Start-UPS? Los Angeles Angel Investor and Venture Capital Partner- Jonathan Hung. Web.
Kalita, S. M. (2023). How to succeed at your first job. Time. Web.
Li, F., Larimo, J., & Leonidou, L. C. (2020). Social media marketing strategy: Definition, conceptualization, taxonomy, validation, and future agenda. Journal of the Academy of Marketing Science, 49(1), 51–70. Web.
Ndidi, A. M., Edwinah, A., & Friday, O. B. (2022). Micromanaging behaviour and employee productivity in SMEs in Rivers State. International Journal of Research and Innovation in Social Science, 06(04), 745–755. Web.
Nwachukwu, C. (2022). 10 small business marketing strategies that actually work. Entrepreneur. Web.
Taylor, B. (2023). Consultative selling: 7 ways to win deals with consultative sales. HubSpot Blog | Marketing, Sales, Agency, and Customer Success Content. Web.
University of Washington. (2021). What can students do to improve their chances of finding employment after college? Web.
U.S. Bureau of Labor Statistics. (2023). Table A-12. Unemployed persons by duration of unemployment. Web.
Vargo, L. (2023). The do’s and don’ts of building a successful team. Forbes. Web.