Is Your Small Business Idea Any Good?
You've got an idea for launching a small business. That spark of inner genius in itself is a feat worth celebrating. But that little lightbulb floating above your head – bright as it may be – can dim quickly if your idea isn't an all-around winner. Of course, you must think your idea is good or else you wouldn't consider moving forth, but to really assess its true value and profitability, you'll need to have a solid "yes" as your answer to the four imperative questions below. You've dreamt it up, now make it a reality!
Are You All In?
First and foremost, are you busting at the seams with passion for your project? If you have any doubts, how will you convince anyone else that your business is worth their while? Additionally, you're going to need to go all in to get this thing off the ground and running strong. If your business idea is inspiring, motivating, and you cannot imagine doing anything more, you're off on the right foot.
Business News Daily quotes Melissa Bradley, executive-in-residence and director of entrepreneurship and innovation at the Kogod School of Business at American University. She notes, "Since starting a business requires an inordinate amount of time, energy and patience, ideally, the idea will be one that you are passionate about and have skills/experience in."
Not to mention, you'll likely have to put forth a heap of funds into your endeavor. Without a rip roaring inner drive, making the money back (and then some) won't happen easily. Your whole heart and soul must thrive off this idea in order for the world to take notice too.
Does It Fill a Void?
Why exactly do you want to pursue this business? If your answer is that you see something's missing out there, or you've got a way to improve upon what your competition is putting forth, then you're onto something smart. You need to know your goal and stand by it.
B Plans suggests asking yourself the following to assess if your idea is smart: "What's your mission? All new businesses need a sense of purpose. Are you trying to improve people's lives in some way? What are the core differentiators of your business that set you apart from the next person trying to build a similar business?"
If your idea is already a "been there, done that" one, you may need to rethink your strategy. Why would someone buy or use your (at this time, unknown) product or service, when there's already a tried, true, and trusted one out there? If your plan isn't fresh or unique in some way, spending time developing it further could lose you money and take away valuable time and energy that you could put towards a new and more meaningful (and profitable) pursuit.
Do People Want It?
Talk up your idea with friends and family and people in the field who are knowledgable or have been successful. Even run your business idea past strangers – you're going to want as many people as possible to buy or use your product or service, right? Find out if people would actually pay for what you're planning to offer. Because even if they like your idea, it doesn't mean they would spend their money on it. Someone may like the idea of getting a Ferrari, but it doesn't mean they're headed to the dealer any time soon.
Business News Daily quoted Wil Schroter, co-founder and CEO of Fundable. He said, "An idea is just an idea until you have a paying customer attached to it. Anyone can discredit a simple idea, but no one can discredit paying customers."
B Plans suggests running test ads with Google Adwords or on Facebook to see if there's any positive response (or any at all for that matter). Revamp and tweak your ideas with the feedback you receive. Any input you get can be put to good use for you to rethink your strategy, spend, and style. It's all about the basic business principal of supply and demand. Make sure whatever you're dreaming up is going to be sought after with enough power to make your company money.
Do You Have a Solid Marketing Plan?
Just because you build it, it doesn't mean they're going to come. In order to fully get that product or service to the right clients and customers, you'll need to have a unique selling point that's scalable to the point you can and want to take it. Clearly defined marketing plans and goals must be laid out before you introduce your product. First impressions aren't the only ones you get, but they will set the reputation for your brand.
Inc. suggests getting advice from a marketing professional from the get-go. "Doing this will reduce your business risk as well as overhead expenses, while providing you with details about how much your business demands in terms of promotion and advertising. New businesses that ignore the value of marketing and think this is something that can be worked out later are usually seen rectifying errors committed at the outset."
Just because you are a savvy entrepreneur doesn't mean you're a marketing whiz as well, so let the experts guide you. Once you've grown your company, you can hire a marketing team to help the business soar year after year with marketing campaigns, social media presence, and other advertising strategies.
With these 4 items in mind, are you convinced your idea's a good one? If not, use these questions to help you get that plan solid and ready for takeoff. Good luck!
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