Do you think your business idea would make a great company? Check out these 10 key questions to determine whether you are onto something.
What makes it different?
Although the core idea of your business doesn’t have to be original, you must create unique selling points (USPs) in order to get clients to choose you over your competitors. You must give them something that no one else can. Do you actually solve a problem with your proposition or is it just perceived as a solution? Are you filling a market gap or improving on an existing service?
Do you have a market, and is it large enough to sustain your business?
Getting your business idea off the ground requires thorough market research. For your business to thrive, you must ensure that there is sufficient – and sustainable – demand. Are you sure there is a good customer-product match or are you just hoping there is one?
What is your business model?
How and what will your customers be charged? What other revenue streams are possible? What is the sustainability and scalability of your model? Identifying whether your business model is viable requires research and planning, including analyzing how your competitors have structured their businesses.
Is it a good price?
If your customers can’t afford your product or service, then you have no chance of growing your business. Find out if your pricing and charging are feasible by speaking with your potential customers.
It is crucial that you ask questions about your business continuously. Make sure to shape your thinking, grow it and challenge it constantly
Piers Mummery
How can you prevent others from copying you?
Have you ever viewed Dragons’ Den? If you have, then you will no doubt have heard the question: ‘How are you going to stop a bigger company from stealing your idea?’. Your USP’s should be strong and differentiated — such as excellent customer service — and you should protect your intellectual property wherever possible.
How well do you know your customers?
Get as much information as you can about your target customer, and listen to them whenever you can. How would you describe your typical customer? Do they behave in a certain way? Do they value the products or services that you offer most? Do you know where they are? Are you using the right advertising methods?
Are you able to turn a profit?
What are the costs associated with producing your idea? (including manufacturing or supplier costs, salaries, overheads, and office equipment)? What price can you charge for your product, and what does it need to sell for you to not only cover your costs, but also make a profit? Can this be achieved?
Is there enough funding to make the venture a reality?
It is essential that you have enough cash to support yourself and your business until you become self-sustaining. If you don’t have the cash, can you raise it?
Have you got the experience, attitude, and skills to succeed?
If you do not have the passion, drive, and commitment to see it through, then even the best idea will fail. Are you prepared to sacrifice in order to ensure this is a success?
What is the potential for growth?
Do you think you can improve your original proposal by adding new products or services, entering new markets, or entering new locations in the future?
It is crucial that you ask questions about your business continuously. Make sure to shape your thinking, grow it and challenge it constantly. If you find the answers easier and the challenges more manageable, then you are heading in the right direction, so get going! No matter what, surround yourself with perspectives and seek insights from people you respect who will give you an opinion you really value instead of just giving you answers you want to hear.
Entrepreneurship fuels my passion and I love hearing people’s stories, so I’d love to hear about your journey.
Get in touch at pierso@thebusinessbox.com, call me on 073 666 55 666 or find me on Linkedin or Facebook.
