Being an entrepreneur is not as easy as it might be portrayed but you can make the most of the journey if you take the right steps. So you have your business idea and it looks good on paper but now it’s time to execute. Execution will demand time and a lot of effort to meet not only sales but to break even. Before you invest into your start up, do evaluate the practicality of your idea in the market. Below are 6 questions you must ask yourself to ensure that your business idea has the best chance of success.
1. Does my product or service solve a specific problem for a specific set of people?
Whatever business idea that you have, it must solve a problem in the market. You need to first identify the problem and find a niche market. Alter an existing product or service in order to solve the problem better than what currently exists in the market. Make sure that your business deals with those problems in a way that no other business has.
2. How competitive is the market and is there room for more businesses?
You need to look at your prospective market including your target audience and competition in the same industry. Does your business have the ability to capture a portion of the market share? What advantage do other companies have with their products or services? What’s unique about your business that can give you an advantage in the market?
3. What are the startup costs associated with this business?
Before you start looking for funding for your business, you need to consider all the expenses that you will incur. You will need to look at things like equipment, rent, utilities, wages, raw materials, inventory, taxes amongst other things.
4. What are my funding options for starting my business?
Truth be told that every business needs to generate capital hence you need to consider ways to fund your start up. There are a number of options including business loans, crowdfunding, personal finance, venture capital and loans from friends and family.
5. How long before I can become profitable?
This one question can make or break a startup and send investors running for the hills. You need to understand the metrics of your business and be realistic on your profit margins. Do as much research about how similar businesses in your field or industry are doing in business and their businesses model.
6. How can I be innovative in this pre-existing market?
With this question you need to be willing to be in touch with the trends to be innovative. You have to have an analytical eye and keep your head on the ground to find the gaps in the market which you can use that to your advantage.