Starting a new business is always a challenging experience, particularly if it’s your first business venture. Fear of failure and financial worries can cause added stress, but your chances of success are greatly increased by choosing the right business idea. If you haven’t yet decided on the type of business you want to run, answer these five questions to help you choose the right idea.
The most successful businesses are run by people who are passionate about what they do. To increase the likelihood of business success, try to determine which projects or jobs you have felt most committed to and which have given you a sense of satisfaction or pleasure. Think about any hobbies, interests or leisure activities that have fully engaged your attention or given you a sense of purpose.
Everybody has a different set of skills and talents that can be applied to a range of work and leisure activities. Try to identify specific skills that you have enjoyed using throughout your life. These skills could be work-based, such as management skills or those related to a specific industry, or they could be interpersonal skills, such as communication and conflict resolution skills.
Brainstorm ideas to look for different ways to combine your interests and skills in order to make money. Write down every option you can think of and try to find at least 25 different ideas, no matter how silly or unrealistic they may seem. The aim of this brainstorming exercise is to kick-start the imagination into finding creative ways to use your talents, skills and passions to come up with a great business idea. Once you have a list of ideas, work through each idea until you find the right one.
In order to determine the validity of your ideas, you need to research the demand for your product or service. You will also need to research your potential competitors to see how they operate and how much of a threat they are to your business. If you choose to sell a product or service in a highly competitive marketplace, you will need to develop a strong brand and compelling sales proposition for your company.
Make a list of all the things you will need to do, acquire or learn before starting your business. For example, if you need to develop new skills or learn more about the specific issues related to your chosen industry, you may need to pay for education or training courses. You may also need to consider seeking funds from an outside source to help set up your business.
Once you can answer all of the above questions, you will have a clearer idea of the steps you need to take to get your business up and running. You should also be able to identify potential barriers, such as lack of financing or gaps in your knowledge. It’s important to recognise potential problems early on, as most barriers can be overcome with a little forward planning.
Use Heptalysis to Evaluate Your New Business Venture
Blow Your Competition Right Out of the Water
Reduce Liability Risks for Your Small Business
Can Your Business Handle an IT Disaster?
It’s Summer, Time to Delegate
Do You Look at Your KPIs?
How do You Measure up on Making the Hard Decisions?
Seven Things You Need to Look at for Financial Success