How to Make Your Business Idea a Reality
If you dream of starting a business but don’t know where to begin, answering these questions will help you determine how to proceed.
How Can You Help?
Having a great business idea does not necessarily make it useful to others. Your business should focus on a service for which there is a need within the marketplace.
How Are You Different?
Once you determine that a broad range of people can use your products or services, you will need to ascertain your competition. Avoid competing with others for the best price in the marketplace by focusing on benefits, including:
- Customer experience
You will find that customers are not necessarily looking for the lowest price, and you can secure a healthy profit if you exceed their expectations in other areas.
How Will You Finance Your Business?
Most businesses need some capital to get off the ground, even if they are home-based. At the very least, you will need to invest in a computer and telecommunication system if you don’t already have one. If you require a more elaborate format that includes a brick and mortar space, or product supplies, you may seek external financing sources if you cannot self-fund. External investors, Small Business Association loans, crowd-funding and grants are viable capital sources to help meet your start-up needs.
Should You Sub-Contract?
You may lack some skills necessary to execute an excellent business idea. Consider sub-contracting any aspect of your product’s manufacture or service to make up for this, but be sure to factor this additional cost into your pricing and ensure that it does not jeopardize your ability to offer a fair market price.
Can You Test Your Product or Service?
You will need to create a business plan to lay out a timeline for your goals and how you expect to achieve them; however, doing so does not guarantee that things will work out as you hope. Test your product or service on a small scale with prototypes, focus groups or marketing initiatives before you undertake a large-scale launch.
Do You Need a Partner?
Most people seek a business partner to offer the necessary expertise and skill they may lack. If the void that needs filling is vital to your business, you may consider a partner, but be sure to investigate candidates whose ethics and vision match your own.
If you are passionate about a business idea, answering some practical questions is the first step toward realizing your dream.