New Product Positioning

When looking to start your own business, it's a good idea to check out some of those who have come before both in the industry you're seeking to break into as well as some that are completely unrelated. You want to get a feel for what has worked and what hasn't in an effort to put together a strategic plan to be used as a roadmap for the first few years of operation.

Here are some insights I found interesting from Fortune's interview with the founder of True Religion jeans, Jeff Lubell.

1. Don't be afraid of powerful people
Lubell shares that when launching his brand, he approached some higher-ups at Gap to obtain private funding without a real introduction. While I completely agree with the sentiment, in all aspects of life actually, I think introductions to potential investors are important, whether you're tapping private investors or securing bank financing. Yes, don't be afraid to go after the big fish but do some research regarding the proper avenues to approach them. Private funding and investors can be the key to successfully launching and sustaining your business. From the very beginning interaction with these individuals should be one of mutual respect to foster a lasting, positive relationship.

2. Skip the prototype
Instead of designing a sample line and shopping it around to various retailers, Lubell had 14,000 pairs of jeans manufactured before he had met with one potential customer. While it's clear this worked for his endeavor, I don't think it's sound advice for everyone. If you're going to be selling a product, you have to make sure you have buyers before sinking capital into production.

3. Comp the sales staff
Now here's a great business strategy. Lubell gave free pairs of jeans away to sales representatives in stores that agreed to carry True Religion on a trial basis. After they started wearing them around their respective stores, stock sold out. It's one thing to get your product into a store, it's a completely different factor to get it endorsed. And could there be a better endorsement than people actually wearing or using your product? Are you going to believe a salesman trying to sell you on the new Ford Taurus if he chooses to drive a Nissan? Of course not. But if he drives one himself, you're far more likely to listen.

Lubell has many more secrets of success that are worth taking a look at, particularly if you sell or manufacture a product. However, the main point is importance of research. Both of what other entrepreneurs are doing well and what decisions have caused them to fail. By conducting this kind of business analysis you can identify strategies you might never have thought of otherwise as potential plans that can positively affect your operations and bottom line.

If you don't have the time do this kind of industry research and analysis, I suggest hiring someone who can. The beauty of a company like Milestone Advisors is that we have been out in the field for years, observing what the Jeff Lubells of the business world have done to catapult a brand or decisions that have tanked their sales. It's this broad experience that allows us to provide clients with business planning and analysis that can position entrepreneurial operations to succeed.