Mrs. Idonthaveaphd
Great entrepreneurs think through their plans and make sure that they are bullet proof from all directions. In order to turn your idea in to a success, you need to first ask yourself a few questions.
• Is your idea the solution?
The most successful business ideas are often the ones that make people’s day-to-day lives simpler. So, what about yours? It does not necessarily have to be the answer to everything (we already have Google for that). As long as it solves something, starting from homework to technical solutions, you are good to go. However, if your idea does not make things a little bit easy for anyone then you know you might already have one foot in the road to failure.
• Who are you competing against?
Let’s face it- it is hard to think of something that is completely unique and out there. It is highly likely that someone else already own a fair share of the market you are trying to get into. In some industries, it is easy to make it as there is always room for one more person with the same idea, but in some others, the market might just be a monopoly.
• How old is the market?
Some markets tend to have some key players who tend to control everything that goes in and out of it. In these types of markets, you will need to advertise more, gain more rep, and work your way up. However, if it is a somewhat new market, it will be easy for you to mark your spot and gain some recognition while doing so.
• Where will all of this go?
There is no point in selling something that is soon to go extinct (unless you are the business of illegal smuggling of rare animal parts). You have to make sure that the business you are trying to set up will last a few years, and the way to do that is to strategically figure out how long the market will last. For example, once CDs were the must-have-thing. But now, if you enter the CD making market, then you will probably suffer from a severe loss after your first few months running.
• Did you research about the barriers to entry?
If you are in the manufacturing business, then you have to keep in mind that there might be some other costs to it like insurance and social/environmental costs. There might also be some local laws and inflexible standard procedures that you might have to follow.
• How are your connections?
Do you know someone who is high up in the political or social ladder, or someone who has been in the business for a long time? If yes, then you will find it easier to succeed.
• How much profit are you expecting?
You should logically plan out a yearly goal that you need to achieve, keeping in mind all the costs and barriers. Also, make sure you are ready to face any drastic situations and have a plan on how to handle the best case and worst case scenarios.
• Do you have the time and money?
Some people have time and no money; some have the money but no time, while some have neither. Make sure that you have sufficient funds to kickstart your business and to keep it running. You should also have some fallback savings to tackle any legal situations or losses that might arrive.