Is there a way to analyze a potential new business opportunity? Yes, it’s called Heptalysis, which is a seven-part framework for analyzing and interpreting such opportunities. The insights gained by using Heptalysis provide the groundwork for a successful enterprise as well as starts the business off on a great footing. The following seven considerations can definitely benefit your business.
You need to analyze the market before launching any new product or service. You need this market research to determine whether or not there is interest in your product or service and to figure out the varying needs and characteristics of your target demographic. For your product or service to be successful, you need a ready and willing market.
Once you have determined that there is a need for your product or service, it’s time to check out the competition. Your market share will depend on how many and how large your competitors’ brands are. Your best bet is to find a gap in a sustainable market before going forth with any plans.
You need to figure out the top of mind problem of your target market. Work on your product or service until you know its definite purpose. Don’t worry about resolving problems that aren’t required by your target market.
You’re much better off marketing and selling a clearly defined product or service that solves a real problem of your target market. What does your market urgently want? Give them that or else they’re going elsewhere. Spend time and budget clarifying your product or service until it definitely solves a relevant issue.
Now is the time to build a solid plan of action for your young business. You need to set out your strategy in order to manage a succinct and consistent company-wide roll out. Determine the structure of your business and the roles of the individual people who will fill them. Include your colleagues in the creation process as their specialized input could be valuable.
You want your team working cohesively towards the same goal, so having a good plan of execution will ensure that. Cover as much detail as you can, however, be ready to evolve and adapt as time goes on, and variations occur.
Your business’ health is dependent on financial planning and is very important to young ones with limited cashflows and narrower profit margins. Construct a thorough outline of your anticipated fiscal situation including payments and money generating strategies.
For the best detailed plan, include even the smallest financial commitments in your calculations. You won’t be able to think of every eventuality but having an extensive estimate of your potential cash flow will help in your decision-making. You will also need to provide future creditors you negotiate with such financial information.
This will be your employees and partners. Of course, the most important asset of a business are the people who run it. Come up with an organizational structure for your business and who will be doing what. You can identify any significant discrepancies or inefficiencies.
Any partners should be taken on with extreme caution, do they fit in with your goals and way of thinking. For staff your best to hire slow and fire fast. Having the right people in their most suitable roles can be the best decision a young business can make so invest your time and money in getting it right the first time. The specific knowledge and expertise of the individuals in your organization also comes under the umbrella of human capital. Tap into the resources available to you by heeding the advice of anyone who can offer an informed opinion.
“It doesn't make sense to hire smart people and then tell them what to do; we hire smart people, so they can tell us what to do.”
What is your potential return you expect over time, looking at your market, structure, and product or service? Predicting your possible return on investment allows you to map out how you’re reinvest or otherwise use your proceeds.
Designate a time limit within which you will see a return and implement methods for plotting your growth. Think ahead to track any changes in crucial areas of your business that you’ve identified as performance indicators.
Margin of Safety
Starting a new business always has some level of risk. Determine your key areas of risk and create a plan to minimize the threat and to deal with any issues that might arise. You’ll never avoid risk altogether, however, you can lower the impact of adverse events through careful planning.
When assessing potential problems, take internal and external factors into consideration. Legislative changes are something that happens frequently and can have a massive impact on your entrepreneurial ambitions. Recently in Canada, the federal government decided to change how corporation compensation works, and got lots of flack for it. The business owner had to adapt the way he compensated other owners and family members. You need to keep informed and give yourself a healthy margin for error in all your calculations.
Heptalysis provides the young business with the framework need to analyze the potential market and its suitability for exploitation. There are tons of perplexing problems that businesses face in their beginning stages but using a tried and true method like Heptalysis eases the burden and makes the process simpler. You can start your enterprise off on a foundation of knowledge and confidence with careful analysis and meticulous planning
How to Pay the GST/HST that Your Small Business Owes
Is it Time for Your Small Business to Register for the GST/HST?
Which Goods and Services are GST Exempt or Zero Rated?
What are Input Tax Credits?
Is it Time for the Annual Clean-up and Back-up of your Files?
When are Canadian Business Taxes Due?
How to Stay Motivated When Working from Home
Working from Home – Why it can be Advantageous for Employers