You’ve got what you think is a brilliant business idea and you just cannot wait to start up and get going. Sounds easy too! After all, look at the many brash entrepreneurs that have emerged triumphant in spite of diving right into a new business, without giving a second thought to market potential or any other so-called business- start-up essentials. However, for every successful story we hear about, there are plenty of dreams that lay shattered and unheard of.
So, before you get into the thick of things, guns a-blazing, there are a few things you need to think about.
The U.S. Small Business Administration recommends that all prospective business owners should ask themselves these two core questions:
What product or service does my business provide and what need does it fill?
What are the potential customers for my product or service and why will they buy from me?
Do not take it for granted that people out there are just waiting for your product to hit the market. Go out there and get feedback from industry experts, business associates and other individuals. Do they think it is a brilliant idea? Would they buy your product?
Identify your target market and weigh the different factors involved, including income levels, age bracket, geographic location and size of the market you are targeting. Does your target market have the potential to grow?
Calculate your selling price taking into consideration all manufacturing and business costs as well as your profit margin. Can your target market afford to buy your product? Once you’ve got the feel of the market, go right ahead and start your business.
No matter how brilliant your idea may be, if it’s not radically new, you will always find someone else competing with you. How is your product any different from that of your competition? Assess your competition and try and determine whether this brilliant idea of yours enhances the quality of the product or service or does not make any difference at all. Make sure your product has something different that will give it the competitive edge.