If you’re anything like me, you’ve probably always wanted your own business but weren’t sure what it would offer to people. Then one day that eureka moment came, finally a business idea that you’re passionate about of which you have experience and knowledge of.
So you now have this business idea, firstly congratulations, for many people coming up with the idea is generally the hardest part, now the next part is to act on it. A lot of entrepreneurs sit on their ideas for months or even years before taking action. Some people can’t find the time to start a business because they work a full-time job along with having a family. Many people are scared to take the plunge, while others don’t know how to set their business idea in motion.
Whatever has been holding you back all this time it is now the time to take the next step to ensure that there’s a market for your business Here are four ways to think more critically about your business idea before you find yourself stuck with products or services no one wants or needs.
Step 1: Research
Most definitely the first step is to check if the numbers support how viable your business might be by gathering the essential information:
- Who are your competitors and how many are out there in your market. An over saturated market doesn’t mean your business wouldn’t be successful, it will therefore mean your business will need to stand out from the crowd with a Unique Selling Point (USP).
- Workout the general revenues for your category in your local market, regionally and nationally. There are plenty of reports available online on growth and revenues of various industries.
- Then you need to determine if the market is new and growing or static and mature. This will give you a great idea of the levels of supply and demand to therefore ensure you adapt your business model accordingly.
Step 2: Chose a proven categories, then find your niche
If you’re unsure of the products or services to offer always pick a proven market over a new none tested one and then find your niche. For example if the options was an anti-ageing skin care product verses a range of skin care for teenage boys then the one to choose is the anti-ageing products. Why, well within the beauty industry anti-ageing is the most lucrative all over the world as that age group invest more into skin care to stay looking as young as possible. It’s a proven commodity with built-in opportunities for repeat business.
Step 3: Focus on wallet share, not market share
It’s easier and cheaper to sell to existing customers than to go out and find new ones. But a business can’t survive on existing customers alone. For a new business you must create products and services that are on demand with a tendency for repeat business. Once you build a loyal customer base, you’ll greatly reduce your outside marketing costs by using good old-fashioned word-of-mouth advertising.
Step 4: Put your ideas to the test
A great way to do this is either recreate mini-bite size of your product or service and offer it FREE to a small group of friends that can be honest with you as a consumer. For example if you’re a qualified Aromatherapists and Beauty Therapists and looking to create your own skin care mask, make a small batch and get at least 10 people with different type of skin types to try it out for at least 1 month. Provide them with instructions and how to use the mask and a feedback form that covers all the vital information you need. If done correctly you should be able to assess what improvements are needed and then retest it further.
After you have covered the four steps above the next step is to work on your business plan, watch this video as it gives you a step-by-step guide on what is needed in your business plan: How to write a Business Plan . If you’re looking for an In-depth entrepreneurship online training programme that you can do anywhere and anytime take a look at our Business Start-up course at Ayescreativelearning.com/courses.