Make recommendations for improving this strategy and describe any challenges you foresee in implementing them. Give examples to support your response.
Great ideas are big business. As entrepreneurs, we all dream of coming up with 'the next big thing.' So if you've been inspired, congratulations! You've already taken the first step. But as any small business owner will tell you, these early stages can make or break your company.
It might be tempting to skip the research phase or just jump right in with your new idea. But setting up a business is not easy. To help you determine whether you have a viable business idea before investing your hard-earned money, we've put together this guide.
Got a new business idea? Then let's get started! Take these steps to evaluate your idea before setting up a business and building a business website:
- Write your business plan.
- Assess market demand.
- Research your direct and indirect competitors.
- Find out who your customers are and what they want.
- Ask for feedback on your idea.
It's easy to procrastinate and put off starting your business plan. Look at it as an opportunity to get your ducks in a row. Tell us about your business idea. Follow up with sections on:
- Customer (target group, sales projections, and customer loyalty)
- The legal form and location of the company
- You (the founders, your mission, your long-term goals)
Writing a business plan from the start can save you a whole lot of heartache down the line. A business plan's task is to guide you through this process, encouraging you to consider your idea thoroughly and assess the risks before entering into a new venture. There are also many examples of business plans you can find online to get you started.
Look at your business plan as an opportunity to take a closer look at the numbers. At the end of the day, you're starting a company to make money. Before you start your business, you'll need to figure out how much money you want to make (is this a side hustle or a full-time job?). Next, determine how much business you'll need to make a profit. Are your projected profits equal to your estimated costs? Be realistic about your expectations!
Assess market demand
You've probably heard the expression "putting the cart before the horse." Have you, on the other hand, applied the same logic to your fledgling company? You may be setting yourself up for disappointment if you launch your product or service without first testing the market. Here's how to avoid it.
You have a practical business idea, but is there space in the market for it?
Ask yourselves three questions:
- Is there a problem that my business will solve for its customers?
- What are people doing about this problem right now?
- Exists my product or service already? What will make my company different or how will I improve on what's already available?
Your concept may be novel, but there's a good chance that something similar already exists. Even the most brilliant business concepts are dependent on market demand. The real question is whether there is enough room for one more. In either case, your responses will aid you in determining whether you can provide a unique solution to an existing problem, or if you can do it better than the competition.