Maybe you feel like coming up with a new business idea and
it seems very difficult, or you might have so many business ideas, you don’t
know what to do with them. Either way, before you invest into I, the first
thing is to take a step back and evaluate the practicality of your idea in the
market. In this article I have listed series of what to consider before
entering market place.
Here are the Basic
questions you need to ask yourself to
ensure that your business idea has the best chance of success.
1. How competitive is the market and is there room for more
businesses?
Once you have identified the problem your product solves,
you must look at the prospective market. You want to make sure that the market
is large enough for your business idea to succeed.
Some things to consider:
Identify how many competing companies exist in the market.
Is there room for a new business to capture a portion of the market share?
If you can capture a portion of the market share, will you
be able to grow and defend against competitors?
Is this a growing market? A perfect example would be the
aging population and their need for physical therapy. Ever increasing potential
customers is not a bad thing.
Investigating all of these points should bring you one step
closer to deciding whether entering the market is viable or not. If there are
many competing companies who possess the majority of the market share, entering
the market may not be the best idea unless you are bringing a disruptive force
that will change the entire makeup of the market.
If you only capture a small portion of the market share and
don’t expect to be able to grow the market in the future, you should look for a
different industry to enter—but be careful about overlooking disruptive forces.
FedEx, and iTunes Uber, are all examples of companies that turned old markets
upside down.
2. Does This product or products solve a targeted problems ?
If your answer to this question is “no,” then think of “yes.” As your anser
The key here is ability to identify enough potential
customers who feel like your product or service will improve their life or solve
their problem. Communicate the problem your product solves directly to the
customers who have the problem. Never try and sell to the entire world. Sell
your niche market. A niche is more cost-effective from an organizational and
marketing perspective and allows you to have a laser focus on a smaller market.
Now think of the last time you had a problem. When searching
for a solution, you probably purchased
3. How much to startup this business?
If you have a perfect answer to the following questions, you
may be feeling good about where your business venture idea is sitting. That’s
great, but the next step is to analyze it directly. Specifically, you need to
understand how much money you need in order to start your business.
Valuate the following:
Inventory:
Equipment
Wages: Number of employees you can afford to pay.
Raw materials
Overhead ( rent a building)
If You do this correctly, You should Know whether to stop
the project or start
4. How can I be innovative in market?
Answers to this question are numerous for every business,
but in order to be innovative, you have to be creative and empathetic to see
the pain points of the market. You have to be willing to do something that
maybe no one’s done and risk failure, or possibly adopt other success stories
to your business. For example:
Could you partner with another business and create a win-win
situation for the two of you?
Can you adapt things that aliexpress, ebay and Amazon has
done to your own business in order to make it successful?
Can you bring more than one of your business ideas together
to create a product or service never before seen?
The possibilities are endless, being innovative and trying
new things, you can create a product that is both financially feasible and
irresistible to customers.
5. The options for your
business funding?
You must evaluate which funding avenue fits the best with
your business and then pursue it.
Business loans: Be careful Don’t be too hasty and take the
first loan offered to you. Understand every part of the loan including interest
rate, monthly payments, personal guarantees, collateral, and the length of the
loan.
Crowdfunding: Kickstarter and GoFundMe are options for startups looking
for small or large amounts of investment by capturing the attention of small
and large-scale investors. Keep in mind that crowdfunding isn’t as simple as
just creating an “ask” page. You need to have ideas about strategies to attract
investment from people who aren’t in your network.
Self financing: This is always my first choice, primarily
because you keep total control and the only investor you have to answer to is
yourself. This can still be done in small business—every one of my businesses
was self-funded.
6. How long will it become profitable for you?
It doesn’t matter if it’s five weeks or five years—ask
yourself how long until the business can start being profitable. This one
question can make or break a startup and send investors running for the hills.
Finding the answer to this question is also sometimes incredibly difficult. But
if you approach it head-on, you’ll be in better position to answer this
question with confidence. From previous questions, you should have an
understanding of what your startup expenses are.
The final step is to evaluate whether you can hold out long
enough before you can become profitable.
I wish you success in your Business. If you will like to
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