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You might have an idea that you feel is the next big thing, or have a hobby you think could make you thousands if done right, but you have no idea how to go about bringing it to fruition. If this is you then you have come to the right place. As you scroll down you will pick up on everything you are missing to get your business off the ground. Let's get started.
- Have a good business idea
Just because you have an idea for a product or service does not mean it will perform well in the market. When it comes to business there are a lot of boxes you need to tick before you get into the thick of it. Three, we recommend you get off your list first:
What are the opportunities in my market?
You need to figure out how likely it is that the market you are getting into has customers you can easily acquire. Determine whether there are enough of them to sell to and cover costs of production. Calculate how many repeat purchases you need to sustain the business long term.
Is your product idea coming off a trend or will it last a while?
If your idea falls into the category of trends like selfie sticks and fidget spinners, you are unlikely to last longer than a year or two.
Unless that is your goal, you need to revisit the drawing board and think of a new idea that you can build a business around with the potential of lasting years.
Who’s your competition?
If your market is full of already established businesses, this is a sign that there is demand for your product, but this also means you will have to spend a lot of effort in differentiating yourself from your competitors. But bear in mind, if the market is saturated then it might not be worth it to get into business in the first place.
- Pick an appealing name
Part of differentiating yourself from the competition is picking a name that is both unique but somewhat telling of the work that you do. Your business name needs to roll off the tongue well since it will always be a part of your marketing and general business endeavors.
We recommend you should aim to:
- Draw it from your mission and vision.
- Keep it original.
- Keep it short.
- Research, research research. Do your research!
Your decision to create a product or service needs to be backed by data. You need to do your best to figure out the likelihood that your product will be successful in the market. That means,
- Figuring out the problem you are going to solve.
- Looking at how many people are willing to pay for your service.
- Reviewing the history of the industry and its growth projections.
- Identifying how much funding, resources and capital you will need to create your business.
- Researching the cost of production.
- Studying your audience and what they like and respond best to.
- Mapping out your product life cycle.
Having these items determined will help you greatly before you begin making your prototype.
- Seek Validation
You have done your research and have made your product prototype, what comes next is reaching out to colleagues, friends and even random people to get their responses and feedback on your prototype. This information will be key in the creation of your final product because it gives you raw, real data on where you are doing well and where you need to fix up.
To validate your product you could,
- Use focus groups. Setting up a testing session with a small group of people whose opinions you trust, as well as some people you barely know, to give you more balanced, less biased feedback.
- Use Sampling. Sending your product to a couple different market leaders, peers and even competitors you trust, to get feedback from experienced individuals.
- Write your business plan
A business plan lays it all on the table. You need to formalize your idea and figure out the specifics of everything involved in creating and selling your product. As you go through the process, you are likely to discover a bunch of different parts to your process you had not accounted for and will gain some insights into how you might make other parts of your production process more efficient.
Business plans are great because even though most entrepreneurs don’t stick to them to a ‘T’, it helps them focus on the key, smaller goals since you’ll know exactly what you should NOT be doing.
Make sure you are always re-evaluating your business plan because it is not a constant.
- Source Funds
Most of the time, you need money to make money. Unless your business is completely skill based and revolves around your ability to provide a service, start-up capital is going to be a high priority when building your business.
Most entrepreneurs opt to take the bootstrap approach due to the control and freedom it gives them, but that is not the only option. You can source investors, get government grants, get family and friends to help you out etc., however, each of these come with their own set of pros and cons, some of which involve debt, less ownership, strict deadlines, targets, and so on.
Most companies struggle with this side of the business, but if you can get it right almost everything else will be smooth sailing.
- Figure out your Business Structure
Your business structure needs to be right for both yourself and the type of business you have and look to develop. The type of business structure you choose will affect the taxes you pay and the liability that will fall on you or your business. Here are some of questions to think about when picking your business structure:
- What kind of business is it?
- How many people are working for the business?
- What is the decision making command?
- Where is it located?
These questions will give you a better idea of whether you should incorporate as an LLC, sole proprietorship or joint partnership. Every business is different so pick the option that is right for you.
- Figure out your tools
There is a lot that goes into a business beyond just creating the product. Behind the scenes a considerable amount of work needs to be done in order to get customers, communicate with suppliers, keep the government off your back and run the business itself as smoothly as possible.
You will need tools and here is a list of tools you are likely to need when getting started:
- Marketing software
- Accounting software or personnel
- Web Content Management/Hosting software
- Project Management software
Every business is different, but chances are there are a lot of tools out there to help you get the job done faster.
Starting a business is no simple task but once you have ticked all these boxes you will be well on your way to making your dreams come true and reaching your goals.
Getting started is the hardest part, but once you get the ball rolling everything else will fall into place if you have the will to see the plan through. Just take it one step at a time and watch as you create greatness.
