Posted by: Procursus Consulting Services on 04/02/2021

YOUR BUSINESS IDEA!

YOUR BUSINESS IDEA 

Start-up or Existing Business

If you are thinking of starting a business in 2021 or wishing to expand as an existing business, it is critical to take the ‘new normal into account. The COVID-19 pandemic has changed so much about how people consume products and services. You might be best served to -consider these changes. Instead of more traditional businesses products or services, think about those that can support how business and consumer’s needs have changed and align to their purchasing.  Sometimes inspiration isn't the problem, it's determining whether the idea is feasible or not. 

IS YOUR IDEA TRULY ORIGINAL? #1

• When you’re first considering a new business idea you need to research your product and service. Why are you doing this? All new businesses need a sense of purpose. What are the core differentiators of your business that set you apart from the next person trying to build a similar business?
• What problem are you solving?  If you aren’t solving a problem for potential customers, then how will you get people to buy your product or service?
• Who are you solving this problem for? Knowing who your ideal customer is and how you can find them is critical to starting a successful business.
• Do you think you can make money? You need not to worry at this early stage about in-depth financial forecasts.

WILL PEOPLE BE WILLING TO SUPPORT  YOUR PRODUCT OR SERVICE? #2

Talk to your potential customers - Not talking to your potential customers raises your chances of failure. You need to validate your key assumptions and product/service offering. Be sure to talk to as many potential customers as you can so you get multiple points of view. You will also gain invaluable insight into what your customers’ buying decisions entail. As you learn about your potential customers, you should go back and update your offering. You might tweak your definition of the customer problem, your solution, and even the competition

WHO IS YOUR CUSTOMER? #3

If you have not identified your customer you will fail.   Firstly, you need to identify who the target market is for your product. Are you planning to sell to individuals or businesses?  What income level would your customers need to have to be able to afford your product or service?   If you don’t determine who your target market is, you might try to satisfy too many different customer needs and end up with a product or service that no one needs. By conducting research you can identify the demographic characteristics of the business and consumers. Develop a general profile of your ideal customers.

WILL YOU BE ABLE TO COMPETE WITH EXISTING COMPANIES? # 4

Prior to to research of competitors, it is essential that you cost your product and service (including packaging and distribution) in order for a comparative analysis to be undertaken with your competitors. Once you find out who your customers are, you will need to look at who else is selling similar products, and where they are selling them. Will you be competing with a product that has already been marketed? Check stores and catalogues or visit trade shows to find out what other products are available, and what companies market them. You need to determine why customers will buy from you instead of buying from your competitor. Is your product superior or is your price lower than the price offered by other businesses? The best way to do this is to conduct market research using existing data or by doing your own survey.

WHAT RESOURCES DO YOU NEED TO GET YOUR BUSINESS   IDEA STARTED? #5

Whether you’re starting a small business or exploring ways to expand an existing one, a business plan is an important tool to help guide your decisions. Think of it as a roadmap to success, providing greater clarity on all aspects of your business, from marketing and finance to operations and product/service details. While some owners may be tempted to jump directly into start-up mode, writing a business plan is a crucial first step for budding entrepreneurs to check the viability of a business before investing too much time or money. The purpose of a business plan is to help articulate a strategy for starting your business and is a standard requirement for funding and investor opportunities. It also provides insight on steps to be taken, resources required for achieving your business goals and a timeline of anticipated results.   For existing small businesses, a business plan should be updated bi annually as a way to guide growth and navigate the expansion into new markets. Your plan should include explicit objectives for hiring new employees, market analysis, financial projections, and potential investors. The objectives should indicate how they will help your business prosper and grow.