Posted: Wed 6th Jul 2022
The process for checking your new business idea should help you identify that everything is in place to start your project. This means confirming you have the right skills and abilities, as well as the right personal circumstances to launch your business. Of course, this will be based on a brilliant idea in a market you've closely assessed!
This exercise requires dedicated time to ask the questions that will help you work out whether your new enterprise is viable. Here are a series of questions you should ask yourself when determining whether your new business idea is viable.
You need to define your business area properly. This means explaining your concept and how you think you'll launch your business before taking it further.
Define the characteristics of your product or service as precisely as possible. Include what you're going to distribute to your marketplace. Are you launching something new, or is your product an add-on for something that already exists?
Before studying your target audience more closely and getting deeper insights, divide your market into segments. Can you identify your clients? Are they scattered around different areas, or are they within your district?
This is a fundamental question. The gap could be too wide between your product and your customers' exact needs. Is there a real and defined need? Is the solution you're providing valid for those customers you're targeting?
To show how you intend your product or service to work, you need to know if it meets your customers' needs. Consequently, put yourself in their shoes to understand their expectations.
You need to be confident about selling your product. For example, are you selling to an online (virtual) market or a real one? Are you a shop or selling from another setting?
Is your project offering something new and different or simply an improved version of what's already out there? Being creative is critical to making sure you stand out from your competitors.
Noting your strengths means you can gauge your competition better, so always analyse them with a critical eye. This will help you find out if they're enough to make your new business appealing against the backdrop of the competition.
It's essential to study and assess the issues you might face with starting your business. Depending on the features of your product, these will vary. They could, for example, include production and distribution issues. There's also a risk that your product or service may be misunderstood due to poor communication on your part.
You need to understand any particular laws that apply to launching a new business. In the UK, this includes laws around tax, registration and other administrative steps.
Is the market you plan to target local, regional or national? Have you segmented your potential customers? Are you working in a business-to-customer (b2c) or business-to-business (b2b) market? Is your market seasonal? Can you tap into a new niche?
You need to define your potential audience and then those customers who will form your key target group.
Are you part of a booming market, which means your competitors will be quick to react? On the other hand, perhaps you're in a mature market where you need to visibly stand apart from your competitors?
Launching into your intended market means you'll need to study it thoroughly and have a good network of contacts. Also, you'll need a suitable capacity for production, which is really important, depending on your position.
Entrepreneurs need motivation. This is an absolute requirement for creating a new business. Motivation is a true pillar in business, but you may lack the right drive and determination on the flip side. Also, this could backfire on you and lead to you making mistakes.
Make sure you (and any co-founders, if you have them) have a well-defined vision of your intended new business.
Ideally, you should be competent in your business, including in marketing and management.
Consider possible setbacks as springboards for growth and progress rather than threats to avoid at all costs. Facing problems and making tough decisions are opportunities to prosper.
It goes without saying that you need to make the most of your communication abilities. Communication is an essential aspect. You're a creator, so don't be afraid of the little challenges that cross your path.
Think carefully: the life of an entrepreneur is no walk in the park, especially at the start. Remember to make time for your personal life. Failing to prepare correctly for this can upset your business's progress.
We've now reached the final stage. Review your answers to the questions above and identify your strengths and weaknesses. After your analysis, you'll be able to look at your new business idea, given the reality of your situation. Now, you need to decide whether your business venture is worth putting into practice.
Take the first step to successfully starting and growing your business.